brother-sister corporation

brother-sister corporation
More than one corporation owned by the same shareholders. If, for example, C and D each owned one-half of the stock in X Corporation and Y Corporation, X and Y are brother-sister corporations. Two or more corporations owned and effectively controlled by one or more individuals, and where these corporations are involved, earnings can be transferred between them only through common shareholder or shareholders, who will be subject to progressive individual income tax. Inland Terminals, Inc. v. U. S., C.A. Md., 477 F.2d 836, 840

Black's law dictionary. . 1990.

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