William Kale - Page 17

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          find the few contradictions in testimony to be understandable and           
          of little importance.                                                       
               Furthermore, other evidence, including Toll’s records of the           
          bribes he paid petitioner supports their testimony.  We have also           
          found the transcript of the “wired” conversation between Suval              
          and petitioner, though not explicit, to be very damaging to                 
          petitioner.                                                                 
               We wish to note, however, that the expert report and opinion           
          of John Lackey add little weight to respondent’s case.  First,              
          Mr. Lackey did not review all the returns which petitioner                  
          examined.  Additionally, the mistakes that Mr. Lackey found in              
          petitioner’s 1977 and 1978 tax return examinations could have               
          been unintentional, possibly resulting from petitioner’s                    
          completing them in a hurry, or from the fact that petitioner did            
          not have the extensive examination resources that Mr. Lackey had.           
          This conclusion could be supported by the fact that Mr. Lackey              
          found similar mistakes in the 1979 and 1980 Cynwyd Group returns            
          which he examined, even though petitioner did not examine those             
          returns.                                                                    
               Nonetheless, even though we give little weight to Mr.                  
          Lackey’s report, we find that respondent has proven, by clear and           
          convincing evidence, that petitioner received unreported bribe              
          income in 1980, 1982 and 1983.  Accordingly, respondent has met             
          her burden of proving that underpayments existed for the years in           
          issue.                                                                      




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