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Elvin or by Yarbrough Leasing to YOC relating to the Sylva
Residence.
The adjustments relating to the travel and entertainment
expenses are not attributable to fraud. There is some evidence
that indicates that General Motors encouraged Elvin to entertain
customers and that Elvin in fact entertained prospective
customers and repeat customers. We sustained respondent's
adjustments relating to travel and entertainment expenses
because petitioners did not offer adequate substantiation.
Respondent has not met her burden of proving that the
adjustments relating to the travel awards are attributable to
fraud. Petitioners argue that the trips to Europe represented
business travel and that Elvin attended meetings relating to the
automobile business. Although it may have been negligent for
Elvin to exclude these travel awards from his income, we do not,
in this case, believe it was fraudulent.
The remaining adjustments for 1983, 1984, 1985, and 1986
relate to YOC's payment of Elvin's personal expenses and to other
benefits that YOC provided to Elvin.3 The schedules supra pp.
22-24 reflect the inherently personal nature of many of these
expenses. We conclude that respondent has met her burden of
3 These adjustments include employee benefits expense,
utilities expense, company vehicle expense, miscellaneous
expense, repair expense, outside services expense, depreciation,
salary expense, interest expense, demonstrator vehicles, and
improvements to Elvin's personal residence.
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