Case study labelle management

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Case study labelle management

At issue is the interpretation of MCL We however disagree, and for the reasons provided below, we reverse and remand. Plaintiff is a Michigan corporation, which was primarily owned by brothers Barton and Douglas LaBelle. LaBelle Limited Partnership is a Michigan limited partnership.

After being sold by Pixie, plaintiff reported its business tax as a separate company. Plaintiff paid the bill under protest and commenced this lawsuit in the Court of Claims. The parties brought cross-motions for summary disposition under MCR 2.

The Case study labelle management issue before the trial court and this Court is whether defendant correctly concluded that the three entities involved plaintiff, LaBelle Limited Partnership, and The Pixie, Inc.

While recognizing that it was permissible to refer to the federal income tax code for definitions in some circumstances, the trial court looked to 26 USC Summary disposition is appropriate under MCR 2.

A genuine issue of material fact exists when the record, giving the benefit of reasonable doubt to the opposing party, leaves open an issue upon which reasonable minds might differ.

Tax laws generally will not be extended in scope by implication or forced construction, and when there is doubt, tax laws are to be construed against the government. The statute at issue here is MCL For purposes of this subsection, flow of value is determined by reviewing the totality of facts and circumstances of business activities and operations.

Rules for determining stock ownership. For purposes of this subpart other than section a 1stock owned means— A stock owned directly, and B stock owned with the application of paragraph 2.

For purposes of subparagraph B of paragraph 1stock owned, directly or indirectly, by or for a foreign corporation, foreign partnership, or foreign trust or foreign estate within the meaning of section a 31 shall be considered as being owned proportionately by its shareholders, partners, or beneficiaries.

Stock considered to be owned by a person by reason of the application of the preceding sentence shall, for purposes of applying such sentence, be treated as actually owned by such person.

For purposes of sections bd 3c 2andsection a relating to constructive ownership of stock shall apply to the extent that the effect is to treat any United States person as a United States shareholder within the meaning of section bto treat a person as a related person within the meaning of section d 3to treat the stock of a domestic corporation as owned by a United States shareholder of the controlled foreign corporation for purposes of section c 2or to treat a foreign corporation as a controlled foreign corporation under sectionexcept that— 1 In applying paragraph 1 A of section astock owned by a nonresident alien individual other than a foreign trust or foreign estate shall not be considered as owned by a citizen or by a resident alien individual.

Paragraphs 1 and 4 shall not apply for purposes of section c 2 to treat stock of a domestic corporation as not owned by a United States shareholder. Clearly, the statute identifies three distinct kinds of ownership: Moreover, the federal tax statutes and regulations are replete with examples that illustrate the proposition that indirect ownership and constructive ownership are two different concepts.

We recognize that there are federal regulations directing that constructive ownership rules— including 26 USC a —are to be applied to determine indirect ownership. However, there are regulations that more clearly delineate between indirect ownership and constructive ownership.

All of this serves to illustrate several points: The primary goal of statutory interpretation is to ascertain the legislative intent that may reasonably be inferred from the statutory language.

The first step in that determination is to review the language of the statute itself. Unless statutorily defined, every word or phrase of a statute should be accorded its plain and ordinary meaning, taking into account the context in which the words are used.

We may consult dictionary definitions to give words their common and ordinary meaning.

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When given their common and ordinary meaning, [t]he words of a statute provide the most reliable evidence of its intent. I heard of the damage indirectly. While federal law often substitutes rules of constructive ownership when addressing stock indirectly owned, it does not do so consistently, and constructive rules only apply when the statute specifically so directs, which MCL Accordingly, plaintiff is entitled to summary disposition as a matter of law.

Reversed and remanded for entry of summary disposition in favor of plaintiff. We do not retain jurisdiction. Murray Search this Case.We however disagree, and for the reasons provided below, we reverse and remand. I. BASIC FACTS The underlying facts involve three different entities during the relevant tax periods: plaintiff, The Pixie, Inc., and LaBelle Limited Partnership.

Plaintiff is a Michigan corporation, which was primarily owned by brothers Barton and Douglas LaBelle. The Value of Wolves. Note: This online review is updated and revised continuously, as soon as results of new scientific research become available.

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Case study labelle management

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Michigan Department of Treasury explains impact of LaBelle Management