- 4 -
in 1983 and 1984, CVI was a wholly owned subsidiary of CV.
DISC Qualification Issue
CVI was organized in 1972 to serve as a sales agent for CV
with respect to CV's sales of its products to customers located
outside the United States. CVI qualified as a DISC for each of
its taxable years ending prior to the taxable years for which its
DISC status is in issue in the instant case (viz, its taxable
years ending January 31, 1983 and 1984 (relevant taxable years)).
Throughout the periods relevant to the instant case, Martin Allen
was CVI's president, Richard Krieger was its treasurer, and James
Spindler was its clerk. They were also the directors of CVI.
CV and CVI entered into a series of agreements with respect
to their export sales activities. Under a written agreement
entitled "Commission Agreement" (commission agreement) dated as
of March 22, 1972, that was in effect during the periods relevant
to the instant case, CVI was appointed CV's sales agent with
respect to CV's sales of CV's products to customers located
outside the United States. The commission agreement provided
that, in exchange for services provided under the agreement, CVI
would receive a commission equal to the maximum amount allowable
pursuant to section 994.
Pursuant to a written agreement entitled "Agreement
Designating Foreign Marketing Departments and Related
3(...continued)
beginning Feb. 1, 1984, and ending Dec. 31, 1984.
Page: 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