- 104 -
tions will not be ignored or recharacterized for Federal tax pur-
poses solely because relationships exist among the persons in-
volved in them. See Goodman v. Commissioner, 74 T.C. 684, 707-
709 (1980), affd. without published opinion 673 F.2d 1332 (7th
Cir. 1981).
III. Positions of the Parties With Respect
To the Transactions at Issue72
A. Bank Transactions73
1. Respondent's Position
Respondent concedes that loans were, in fact, made to
Radcliffe and to BOT in the Bank transactions and that those
corporations paid interest with respect to those loans. Thus, as
she acknowledges, "This controversy involves the identity of the
true lender of the funds borrowed by BOT and Radcliffe and the
true recipient of the interest paid by BOT and Radcliffe." It is
respondent's position that, in substance, one or more of the
foreign corporations pledging collateral, and not the U.S. banks
in question, made the Bank loans at issue to Radcliffe and to BOT
and Radcliffe and BOT paid interest to those corporations, and
72 We set forth what we understand to be the main arguments and
contentions that the parties advance in support of their respec-
tive positions.
73 Although the parties' respective positions and the conten-
tions supporting those positions are discussed by them principal-
ly in terms of the U.S. banks in question, in addressing those
positions and contentions we have considered all of the banks in
question and their respective roles in the Bank transactions.
Accordingly, we have, when appropriate, expanded the parties'
contentions to include all of the banks in question.
Page: Previous 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 NextLast modified: May 25, 2011