- 26 -
States, 868 F.2d 859, 862-863 (6th Cir. 1989), the Court of
Appeals for the Sixth Circuit stated as follows --
the essence of the step transaction doctrine is that an
“integrated transaction must not be broken into
independent steps or, conversely, that the separate
steps must be taken together in attaching tax
consequences”. * * *
* * * * * * *
Under the end result test of the step transaction
doctrine, “purportedly separate transactions will be
amalgamated into a single transaction when it appears
that they were really component parts of a single
transaction intended from the outset to be taken for
the purpose of reaching the ultimate result.” King
Enters., Inc. v. United States, 418 F.2d at 516. * * *
Here the parties have stipulated the following facts with
regard to the transfer of LOF’s glass division and the change in
ownership of LOF Glass.
Late in 1985, representatives of Pilkington approached LOF
concerning acquisition of LOF’s glass division. During November
of 1985 through early March of 1986, negotiations regarding the
possible acquisition took place.
On March 6, 1986, LOF transferred the glass division to LOF
Glass, the new subsidiary that had been formed for that purpose.
One day later, on March 7, 1986, LOF entered into a 45-page
agreement to transfer to Pilkington Holdings all of its stock
interest in LOF Glass in exchange for Pilkington Holdings’ stock
interest in LOF.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011