Owen J. Roberts

“ The statute does not purport to allow a credit for a stated proportion of the total foreign taxes paid or the foreign taxes paid 'upon or with respect to' total foreign profits, but for taxes paid 'upon or with respect to' the subsidiary's 'accumulated profits', which, by definition, are its total taxable profits less taxes paid.
If, as is admitted, the purpose is to avoid double taxation, the statute, as written, accomplishes that result. The parent receives dividends. Such dividends, not its subsidiary's profits, constitute its income to be returned for taxation. ”

“ Although the regulations definitely govern this case, and were made prior to the years in controversy, the petitioner insists that the antecedent administrative interpretation long in force renders it impossible for the Commissioner to promulgate a regulation changing for the future the earlier practice, even though the new regulation comports with the plain meaning of the statute. We think the contention cannot be sustained [9] . ”