FEDERAL · 26 U.S.C. · Chapter Subchapter G—Corporations Used to Avoid Income Tax on Shareholders

Evidence of purpose to avoid income tax

26 U.S.C. § 533
Title26Internal Revenue Code
ChapterSubchapter G—Corporations Used to Avoid Income Tax on Shareholders
PartI

This text of 26 U.S.C. § 533 (Evidence of purpose to avoid income tax) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
26 U.S.C. § 533.

Text

(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.

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Source Credit

History

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

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26 U.S.C. § 533, Counsel Stack Legal Research, https://law.counselstack.com/usc/26/533.