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pursuant to the respective overbilling and kickback arrangements
with them.
Mr. Walker contends he made additional cash payments to
Short and Simmel. He maintains that he directly gave them cash,
purchased for them items of expensive clothes and jewelry, and
paid for their various trips or outings. He estimates that he
made at least $407,900 in additional cash payments to them during
1978 through 1981.
Respondent, on the other hand, contends that Mr. Walker has
failed to establish that anywhere near $407,900 of actual
additional cash payments were made to Short and Simmel.
Respondent asserts that no further reduction in respondent's
determination with respect to Mr. Walker's unreported taxable
income, for 1978, 1979, 1980, and 1981, is warranted.
We do not accept Mr. Walker's contention that he made
$407,900 of additional payments. While the record reflects that
some additional payments were made to Short, the $407,900 amount
Mr. Walker asserts is excessive. As respondent points out, the
payments Short and Simmel received during 1978 through 1981
represented their respective shares of the overbilled amounts
West Jersey collected from their employers.
Mr. Walker arrived at the $407,900 amount by estimating
that, during 1978 through 1981, he made additional cash payments
equal to at least 10 percent of West Jersey's annual gross sales
to B.F. Shaw and Pullman. He testified that under the
overbilling and kickback arrangements, the overbilled amounts
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