Internal Revenue Code (Title 26 U.S.C.)
26 U.S.C. § 533
Evidence of purpose to avoid income tax
Official textgovinfo.govlast amended
# (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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Nearby sections (25 sections)
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- 529 · Qualified tuition programs
- 529A · Qualified ABLE programs
- 530 · Coverdell education savings accounts
- 531 · Imposition of accumulated earnings tax
- 532 · Corporations subject to accumulated earnings tax
- 533 · Evidence of purpose to avoid income tax
- 534 · Burden of proof
- 535 · Accumulated taxable income
- 536 · Income not placed on annual basis
- 537 · Reasonable needs of the business
- 541 · Imposition of personal holding company tax
- 542 · Definition of personal holding company
- 543 · Personal holding company income
- 544 · Rules for determining stock ownership
- 545 · Undistributed personal holding company income
- 546 · Income not placed on annual basis
- 547 · Deduction for deficiency dividends
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