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 Rev. Rul. 63-95

1963-1 C.B. 363

Full Text

Rev. Rul. 63-95 /1/

The decision of the United States Court of Claims in Otis Elevator Company, a Maine Corporation v. United States , 301 Fed.(2d) 320 (1962), did not sustain the position of the Internal Revenue Service that any purchases, regardless of amount, outside the Western Hemisphere will disqualify a corporation as a Western Hemisphere trade corporation as defined in section 109 of the Internal Revenue Code of 1939. This section, in part, defined the term `Western Hemisphere trade corporation' as a domestic corporation all of whose business is done in the Western Hemisphere.

The Internal Revenue Service will not litigate this issue in any other cases arising under the 1939 Code where the aggregate of the purchases outside the Western Hemisphere for a taxable year does not exceed an amount equal to five percent of the corporation's gross receipts from all sources for such taxable year.

/1/ Based on Technical Information Release 469, dated April 22, 1963.