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Distribution of Own Debt As a Dividend (Kraft Foods)

2024-10-27

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Today we published a chart of Kraft Foods Co. v. Commr..

In the 1956 case, the Second Circuit held that a corporation can distribute its own debt as a dividend to its shareholder, as long as the debt is true debt and the parties and the transactions are not shams.

Tags: 301 Distributions, Charts - Flowcharts