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in the leases between A&A and April Leasing, and between Elissa
Leasing, and Stacey Leasing, and other companies owned and
controlled by the Cailliers. The record does not show that
petitioner deducted tire expenses for prior years or whether the
other companies related to petitioner deducted tire expenses for
years prior to 1990. Petitioner's prior two Federal income tax
returns listed only truck maintenance expenses in general and did
not specify any amounts as tire expenses, and petitioner offered
no proof that prior purchases were made or deducted by
petitioner. Respondent's agent, in reviewing the books and
records of petitioner for years prior to 1990, found no payment
of tire expense or deduction taken for such expense. Kurt
Caillier testified that had he known that the tire replacement
clause put the burden of providing tires on Nikki's, the lease
rate would have been higher, but this statement was not supported
by other evidence in the record, such as by lease rates of other
companies or of petitioner's related companies. Petitioner has
offered no evidence other than the testimony of Kurt Caillier.
There are numerous other deficiencies in the evidence. Kurt
Caillier testified that he did not read the lease carefully
before he signed it, but he did not testify as to who furnished
the drafter of the lease with the information that caused this
clause to be put in the lease.
The record shows that Mr. Chris Pisano, the general manager
of petitioner, signed the truck rental lease on behalf of
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