The net gift theory achieves results that comport with congressional policy, but its focus on donative intent finds little support in the Code. The part-sale, part-gift theory undermines Congress' policy toward gifts, but follows logically from the Supreme Court's decision in Old Colony Trust. The Note concludes, therefore, that Congress should amend the Code to make clear that liability for gift taxes is shared by donors and donees. By ensuring that donee payments of gift taxes would riot constitute taxable gain to donors, this amendment would eliminate the inconsistency between Congress' goals and its operative language.
Michigan Law Review,
Donee Payment of Gift Tax: Crane, Old Colony Trust, and the Need for Congressional Action,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol80/iss5/7