- -11 inconsistencies in respondent's calculation, notably that seemingly identical shipments are assigned substantially different customs duties. However, the fact that the amount of customs duties arrived at by petitioner's calculations is much greater than either the amount reported on petitioner's returns, or the amount calculated by Mr. Lee at the time the invoices were prepared, indicates that petitioner's method of calculating the appropriate customs duties overstates customs duties. On brief, petitioner calculated that the total customs duties for its fiscal years 1989 and 1990 were $792,121.09 and $1,194,213.13, respectively. However, petitioner deducted on its Federal income tax returns only $398,900 and $630,135, respectively, for its fiscal years 1989 and 1990 for customs duties for both garments and badges. We are convinced that the purchase invoices were properly matched by respondent to the corresponding customs invoices. Therefore, the numbers on the customs invoices represent the calculations made by Mr. Lee at the time the garments were shipped. It was these amounts that petitioner actually paid as customs duties with respect to the documented sales for which the record permits a matching with customs duties invoices. These are the amounts properly includable in petitioner's cost of goods purchased or inventories as customs duties costs. There is some evidence in the record to indicate that not all items were subject to customs duties that may explain some ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011