- 76 -
MTNV/MSI reported the following on its Federal tax returns:
Royalties/
FYE Gross Total Taxable Franchise
July Receipts Income Income Payments
1986 $ 7,048,767 $3,836,276 $ 636,795 --
1987 8,880,965 5,884,314 1,308,856 $ 888,513
1988 11,338,915 7,522,728 1,485,473 489,190
855,023
1989 12,714,857 8,401,603 1,815,541 1,400,000
15,728
1990 13,413,711 8,526,965 1,636,788 1,400,000
12/31 Calendar Year
1990 4,290,024 2,696,365 205,292 583,333
1991 11,759,972 7,710,400 1,754,155 1,400,000
MSI deducted as consulting fees to Eurotor:
MSI 1988 1989
Eurotor $232,549 $86,341
Included in the 1987 through 1989 returns were additional
deductions for management fees and royalty payments to Manver.
The 1988 and 1989 returns also contained deductions for debt
guarantees, franchise amortization, and interest including
Original Issue Discount.
The taxable income of MTNV/MSI for years ended 1984 through
1991 totaled $9,024,857. The total royalty/franchise payment
paid to Manver for that period was $7,031,787. Of the preroyalty
payment profits, 56 percent went to MTNV/MS and 44 percent went
to Manver as royalty and franchise payments.
In August and September 1985, J. Russell Hamlin (Hamlin) of
C&L Orlando sent two letters to Lesley Gelabert (L. Gelabert),
A. Gelabert’s wife, at Inverspan, regarding Inverspan, MTNV, and
Page: Previous 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 NextLast modified: May 25, 2011