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certificates of deposit in LTD’s name. Accordingly, we conclude
that Amalgamated Dental is not dispositive of the instant case.
Petitioners also rely heavily on Spermacet Whaling &
Shipping Co. S/A v. Commissioner, 30 T.C. 618 (1958). In
Spermacet, this Court addressed the issue of whether the taxpayer
was "engaged in trade or business within the United States"
within the meaning of section 231(b) of the 1939 Code, as
amended. The taxpayer entered into a contract to provide
management services for whaling boats. The Court held that the
"business in which * * * [the taxpayer] was engaged was that of
managing the [whaling] expedition" and that the taxpayer’s
"activities which produced the income in question took place
almost entirely on the high seas or in Norway." Id. at 633.
Additionally, the Court held that the activities that the
taxpayer performed within the United States were "without
substance." Id. The Court stated:
* * * [the actions in the United States of the
taxpayer’s forty percent shareholder] in receiving
monthly statements or correspondence involving * * *
[the taxpayer], or in paying a limited number of
obligations requiring payment in American dollars out
of a bank account * * * maintained by * * * [the
taxpayer], were ministerial and clerical in nature,
involving very little exercise of discretion or
business judgment necessary to the production of the
income in question. * * * [Id. at 633-634.]
Finally, "The holding of the directors’ meetings in New York City
solely for the personal convenience of the directors was of no
particular consequence." Id. at 634. Accordingly, the Court
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