Us Code § 533 - Evidence of purpose to avoid income tax
Full text of Us Code United States Code § 533 — Evidence of purpose to avoid income tax, with citation guidance and answers to common questions.
§ 533. Evidence of purpose to avoid income tax
(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.
(Aug. 16, 1954, ch. 736, 68A Stat. 179.)
About This Section
26 U.S.C. § 533 is part of Title 26 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
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