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YOC's retained earnings increased substantially each year,
but YOC did not declare or pay any dividends. Instead, Elvin
appears to have had unlimited use of YOC's funds for his personal
benefit.
Elvin owned a majority of the outstanding stock of YOC, and
Elvin was solely responsible for day-to-day operations and
management of YOC. Swisher was a silent partner, and there is no
evidence that Swisher's minority interest in YOC in any way
limited the amount of funds Elvin could withdraw from YOC.
Most, if not all, of the debits or increases to the YOC-
Elvin Account resulted from payments or transfers of funds made
by YOC for Elvin's personal use. The payment of Elvin's utility
bill for his residence, the transfer of cash to Elvin, the rental
of a vacation condominium for Elvin and his family, and
improvements to Elvin's residence are examples of the personal
nature of Elvin's expenses that were paid by YOC.
Interest was not charged on the YOC-Elvin Account until
December of 1985, after Elvin was notified by respondent that a
criminal tax investigation of Elvin had begun.
The outstanding debit balance in the YOC-Elvin Account
increased each year and at no time did repayments exceed the
amounts withdrawn.
With regard to the $325,939 debited in 1986 to the YOC-Elvin
Account in connection with the purchase of real property for the
new Chrysler-Plymouth dealership, YOC did not have an ownership
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