Evidence of purpose to avoid income tax

  1. Law
  2. USC 26
  3. Internal Revenue Code
  4. Income Taxes
  5. NORMAL TAXES AND SURTAXES
  6. Corporations Used to Avoid Income Tax on Shareholders
  7. CORPORATIONS IMPROPERLY ACCUMULATING SURPLUS
  8. Evidence of purpose to avoid income tax

Checkout our iOS App for a better way to browser and research.

§533. Evidence of purpose to avoid income tax

(a) Unreasonable accumulation determinative of purpose

For purposes of section 532, the fact that the earnings and profits of a corporation are permitted to accumulate beyond the reasonable needs of the business shall be determinative of the purpose to avoid the income tax with respect to shareholders, unless the corporation by the preponderance of the evidence shall prove to the contrary.

(b) Holding or investment company

The fact that any corporation is a mere holding or investment company shall be prima facie evidence of the purpose to avoid the income tax with respect to shareholders.

(Aug. 16, 1954, ch. 736, 68A Stat. 179 .)


Download our app to see the most-to-date content.