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stated that "we are convinced that * * * [the taxpayer] was not
engaged in any substantial, regular, or continuous ordinary
business activity in the United States." Id. at 634.
We conclude that the facts in the instant case are
distinguishable from those in Spermacet. LTD's activities in the
United States, as conducted by LTD directly and through INC,
exceeded the mere receipt of LTD’s own monthly statements or
correspondence and limited payments of bills from a bank account.
LTD received clients’ funds and placed such funds with third
parties. Additionally, LTD’s activities in the United States
were more extensive than the taxpayer’s "ministerial and
clerical" activities in Spermacet. LTD traded in stocks or
securities in the United States. A substantial part of the
activities that produced LTD’s income took place in San Antonio.
In sum, we conclude that Spermacet Whaling & Shipping Co. S/A v.
Commissioner, supra, is not dispositive of the instant case.
We also conclude that petitioner’s reliance on Scottish Am.
Inv. Co., Ltd. v. Commissioner, 12 T.C. 49 (1949), is without
merit. In Scottish American, this Court addressed the issue of
whether a group of Scottish trusts, by virtue of the activities
of an office in the United States, were "engaged in trade or
business within the United States" within the meaning of section
231(b) of the 1939 Code, as amended. The Court found the
following facts:
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