THE RABY CORPORATIONS.
On writ of Certiorari to the District Court of Appeal, Fourth Appellate District of California. Mr. Chief Justice delivered the opinion of the Court on Whether a corporate entity can be ignored, even though the corporation is actually engaging in business and Whether a corporation, with no other stockholders than another corporation, the stock of which corporation in turn is owned by a corporation, and so on, add infinitum. Prior to December 31, 1951, respondent Edgar Lear was controlling stockholder of each and all of the respondent corporations. As of that date each of the corporations acquired stock in one or more other of the corporations, in such manner and to such effect that if the group of corporations were consolidated, no capital stock would be outstanding. The undisputed objective of the plan was to lessen the taxes of Edgar Lear-both the income tax and the estate tax-while keeping in the hands of Edgar Lear and his family the actual control of all of the respondent corporations.
- DOI
- 10.2308/tar-7085632
- Volume
- 27 (3)
- Pages
- 359-360
- Language
- en
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