William O. Douglas

“ Tax avoidance is a dominating motive behind scores of transactions. It is plainly present here. Will the Service that calls this transaction a 'sham' today not press for collection of taxes arising out of the surrender of the annuity contract? I think it should, for I do not believe any part of the transaction was a 'sham.' To disallow the 'interest' deduction because the annuity device was devoid of commercial substance is to draw a line which will affect a host of situations now now before us and which, with all deference, I do not think we can maintain when other cases reach here. ”

“ Evils or abuses can be particularized by Congress. We deal only with 'interest' as commonly understood and as used across the board in myriad transactions. Since these transactions were real and legitimate in the insurance world and were consummated within the limits allowed by insurance policies, I would recognize them tax-wise. ”