- 60 -
MMA 148,540
1985 IFF 460,160
MMA 205,186
Dividend 503,147
1986 IFF 593,093
MMA 529,512
Dividend 13,146
LTD declared a dividend of $516,263 on December 10, 1985,
and payable on December 20, 1985, to LTD shareholders according
to an established schedule. LTD paid $503,147 in calendar year
1985 and $13,146 in calendar year 1986. Both dividend payments,
however, were made during LTD’s taxable year ended June 30, 1986.
The total amounts in docket No. 3443-93 on which LTD is
potentially liable for withholding tax for each calendar year are
as follows:10 $1,668,636 for 1987;11 $6,105,862 for 1988; and
10
For calendar years 1987, 1988, and 1989, the parties
stipulated as revisions to the statutory notice of liability
amounts in docket No. 3443-93 on which LTD is potentially liable
for withholding tax. The parties, however, did not stipulate a
breakdown of the withholding amounts, which is necessary to our
analysis, infra pp. 160-184, relating to LTD’s withholding tax
liability. We note that a stipulated joint exhibit provides the
breakdown of the withholding amounts, which we set forth herein
and utilize in our analysis, infra pp. 160-184. We note that the
stipulated joint exhibit provides total amounts subject to
withholding tax different from the total amounts stipulated by
the parties.
11
The statutory notice of liability included a dividend in the
amount of $500,000 that was subject to withholding tax for
calendar year 1987. The parties’ stipulated joint exhibit,
however, did not include any dividend amount as subject to
withholding tax for calendar year 1987.
At the commencement of trial, respondent moved to amend the
answers and to conform the pleadings to the proof in docket nos.
3441-93 and 3443-93. Respondent’s motions included an attempt to
introduce the $500,000 dividend as an amount subject to
(continued...)
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