- 4 - as having made a prima facie showing as to the deemed facts. Estate of Spear v. Commissioner, 41 F.3d at 117. The Court of Appeals said: there are many other places in the opinion that make it appear that the tax court found sufficient evidence of net worth and of fraud without relying on the deemed facts. Nonetheless, because we are unsure whether the court relied on these facts and shifted the burden of proof, and because the consequences to the taxpayers are so significant, we must assume that the court did rely on these facts. We will thus treat the sanction as one that essentially shifted the burden of proof (and production) on net worth and on fraud. Id. at 108-109. The Court of Appeals limited its discussion of the record mainly to the facts bearing on the sanctions issue. Estate of Spear v. Commissioner, 41 F.3d at 105. The Court also said: The [tax] court may, of course, elect to retry the case. In that event, it might be well advised to rely upon Jeanette's videotaped deposition in lieu of her testimony, although perhaps her emotional state is now better. On the other hand, the court may simply prefer to decide the case on the basis of the existing record, but absent the "deeming" and its consequences which we have declared invalid. Id. at 117. The Court of Appeals also said with respect to petitioner's videotaped deposition that "it is difficult to see how anything more would be forthcoming at a trial." Id. at 116. We agree. Neither side has requested further trial. We conclude that further trial is unnecessary.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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