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and (3) the payment of a dividend to CV prior to the close of
those taxable years. The parties agree that, in the event the
transfers were effective to complete the foregoing, CVI satisfied
the 95 percent of assets test as of the close of each of its
relevant taxable years.
Petitioners contend that the transfers in issue effected the
purchase of qualified export receivables and the transfer of
ownership of the cash used to reimburse CV for certain expenses
and to pay dividends to CV, so that CVI's assets as of the close
of its relevant taxable years did not include the funds
transferred to CV but did include the receivables purchased with
a portion of the funds. Petitioners further contend that the
actions taken subsequent to the end of each of CVI's relevant
taxable years, when the information necessary to ascertain the
amount of receivables purchased became available, merely
memorialized or documented the transactions that had taken place
before the end of each year.
Respondent, however, contends that the actions taken before
the close of each of CVI's relevant taxable years were not
sufficient to effect the purchase of CV’s qualified export
receivables, the reimbursement of expenses incurred by CV, and
payment of dividends to CV, but that CV and CVI merely had an
intention to do such things at the close of each of CVI’s
relevant taxable years which was not carried out until after the
close of each of those years, when the final steps of each
transaction were carried out. Consequently, respondent maintains
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