George Sutherland

“ A claim that it is a gift presents the sole and simple question whether its designation as such is genuine or fictitious; that is to say, whether, though called a gift, it is in reality compensation. To determine that question we turn to the facts, which we have already detailed.
From these we learn that the recipients of the bounty here in question never were employees of the Unopco Company, or of any of its stockholders. The Universal Company, in whose employ some of the recipients then were, was at the time in no way connected with the Unopco Company or any of its stockholders. ”

“ The payment for services, even though entirely voluntary, was nevertheless compensation within the statute.'
If the sum of money under consideration was a gift and not compensation, it is exempt from taxation and cannot be made taxable by resort to any form of subclassification. If it be in fact a gift, that is an end of the matter; and inquiry whether it is a gift of one sort or another is irrelevant. This is necessarily true, for since all gifts are made nontaxable, there can be no such thing under the statute as a taxable gift. ”

“ The intent is shown by the appeal made at the stockholders' meeting to the effect that it would be a nice and generous thing for these former stockholders of the Universal to show their appreciation of the past loyalty of that company's employees by remembering them in the form of a 'gift or honorarium,' and by the common understanding then reached that the stockholders would make the suggested 'presents or gifts' to these employees. Quite evidently, none of these stock holders had the slightest notion that a payment of compensation was to be made. ”