Documente Academic
Documente Profesional
Documente Cultură
715
PAREDES, J.:
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We may even say that the cars and trucks merely touched the
hands of Liddell Motors, Inc. as a matter of formality.
Accordingly, the mere fact that Liddell & Co. and Liddell
Motors, Inc. are corporations owned and controlled by Frank
Liddell directly or indirectly is not by itself sufficient to justify the
disregard of the separate corporate identity of one from the other.
There is however, in this instant case, a peculiar sequence of the
organization and activities of Liddell Motors, Inc.
As opined in the case of Gregory v. Helvering, "the legal right
of a tax payer to decrease the amount of what otherwise would be
his taxes, or altogether avoid them, by means which the law
permits, cannot be doubted". But as held in another case, "where
a corporation is a dummy, is unreal or a sham and serves no
business purpose and is intended only as a blind, the corporate
form may be ignored for the law cannot countenance a form that
is bald and a mischievous fictions".
"x x x a taxpayer may gain advantage of doing business thru a
corporation if he pleases, but the revenue officers in proper cases,
may disregard the separate corporate entity where it serves but
as a shield for tax evasion and treat the person who actually may
take benefits of the transactions as the person accordingly
taxable, ,
"x x x to allow a taxpayer to deny tax liability on the ground
that the sales were made through another and distinct
corporation when it is proved that the latter is virtually owned by
the former or that they are practically one and the same is to
sanction a circumvention of our tax laws." (and cases cited
therein.)
"We are, however, inclined to agree with the court below that SM
was actually owned and controlled by petitioner as to make it a
mere subsidiary or branch of the latter created for the purpose of
selling the vehicles at retail (here concrete blocks) x x x."
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Decision reversed.
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