Supreme Court of the United States
Maximov v. United States
April 29, 1963373 U.S. 49
Summary
The Supreme Court held that a U.S. trust with British beneficiaries is not a “resident of the United Kingdom” under Article XIV of the 1945 Income Tax Convention and therefore is not exempt from U.S. income tax on its retained capital gains. The Court affirmed the lower court’s denial of the exemption, interpreting the treaty according to its plain language and the definition of “person” under domestic law.
Holding
- Whether the trust qualifies as a “resident of the United Kingdom” within the meaning of Article XIV of the 1945 Income Tax Convention and is therefore exempt from U.S. tax on its capital gains.. The trust is not a resident of the United Kingdom and is therefore not exempt from U.S. income tax on its retained capital gains.
Docket 240
Cited authorities
- T. D. 5569
- T. D. 6108
- T. D. 6160
- T. D. 6149
- 60 Stat. 1377
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