- 16 - Overdraft Agreement. Throughout 1985, 1986, and through November of 1987, the overdraft amount was reported on Nihon Intergraph’s financial statements as a debt obligation of Nihon Intergraph, and Nihon Intergraph reported to Japanese tax and regulatory authorities that the overdraft amount represented a loan from Citibank Tokyo to Nihon Intergraph. On attachments to petitioner's 1985 and 1986 consolidated U.S. Federal income tax returns and on petitioner's 1985 and 1986 filings with the SEC, the overdraft amount was reflected as Nihon Intergraph’s debt obligation that was guaranteed by Intergraph. The overdraft amount was reflected on Nihon Intergraph’s Japanese tax returns as a debt obligation of Nihon Intergraph. Citibank Tokyo looked primarily to Nihon Intergraph for payment of the overdraft amount. In 1985, 1986, and through November of 1987, not just the form but also the substance of the loan reflects a loan to Nihon Intergraph. For example, if the substance of the loan constituted a loan made to Intergraph, Intergraph would have had to reflect and would have so reflected on its financial statements a foreign currency exposure with regard to the overdraft amount and, in all likelihood, Intergraph would have repaid the �823,943,385 directly to the creditor (namely, to Citibank Tokyo). Intergraph would not have transferred the �823,943,385 into the checking account of Nihon Intergraph, anPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011