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consolidated returns in the past and presented irrevocable
proxies and an agreement dated September 30, 1988, as evidence of
an earlier separation. INI, Inc., alleged that the agreement and
proxies were backdated and therefore did not take effect until
after September 30, 1988. This Court stated in part: "In the
event that we were to determine that the execution of the
irrevocable proxies occurred sometime after September 30, 1988,
it would then become necessary for us to determine when the
Agreement became effective and whether it was sufficient to
deconsolidate the entities." Id. Here we conclude that the
contemporaneous documents belie any claim that the backdated
documents memorialize the actual agreement at the earlier and
crucial date. See Saigh v. Commissioner, 36 T.C. 395, 420
(1961).
On brief, Kolonaki argues that it has beneficial ownership
of JAI stock because JAI and Kolonaki are effectively one
business unit, administered as one company with Georgiou as the
head of the economic entity. A similar argument was rejected in
Ray Engineering Co. v. Commissioner, 42 T.C. 1120 (1964), affd.
347 F.2d 716 (3d Cir. 1965). In Ray Engineering Co., the
taxpayer filed consolidated returns based on operation of the two
corporations as a business unit with the same executive officer
who owned all of the stock in both corporations. The Court held
that there was "no common parent" within the meaning of section
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