- 5 -
in payment of the corporation’s interest in Kywood. That check
was also deposited into the account of the Church of the New Age.
On September 25, 1987, Kentucky Wood issued a check payable
to Mrs. Dubose in the amount of $61,319.61 as payment for 2,693
shares of her stock in Kentucky Wood. On October 29, 1987, at
petitioner’s direction, that check was deposited into a new
interest-bearing checking account in the name of Earth Harmony
Church. Also on September 25, 1987, a check in the amount of
$17,773.80 was issued by Kentucky Wood to Mrs. Dubose in payment
of her remaining partnership interest in Kywood. This check was
also deposited into the Earth Harmony Church account.
On April 22, 1988, petitioners opened a checking account in
the name of the Church of the Golden Rule. In 1988 and 1989,
petitioners transferred $275,000 from the bank account of the
Church of the New Age to the bank account of the Church of the
Golden Rule. Petitioners had signature authority on the Church
of the Golden Rule account and used the funds in that account to
make personal investments and to pay personal expenses.
Petitioner’s purpose in depositing funds into bank accounts
in the name of the Church of the New Age, the Earth Harmony
Church, and the Church of the Golden Rule was to avoid income tax
on the sale of petitioners’ interests in Kentucky Wood
and in Kywood and to avoid paying tax on income earned on the
proceeds of sale. To further that purpose, petitioner made
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011