- 16 -
North County Builders, which were businesses other than
petitioner. Hanson testified that he worked about 25 hours a
week for petitioner. Searing testified that he worked for
petitioner from 2 to 10 hours a week. Respondent contends that
petitioner paid its officers exclusively for services performed
for petitioner.
We agree with respondent. Petitioner's interrogatory
answers conflict with Hanson's and Searing's testimony. In
supplemental interrogatory response for petitioner, Chasin stated
that Searing and Hanson "rendered services for petitioner based
upon an 8-hour day for 50 weeks per year." The supplemental
response suggests that the officers provided substantial services
for petitioner. Chasin testified that the supplemental response
included services for business ventures other than petitioner.
Chasin's explanation is contrary to the language in the
supplemental response, which states that the services were for
petitioner.
North County Builders had five owners, including
petitioner's three officers. It is implausible that petitioner
would pay salaries that North County Builders owed.
Petitioner's board of directors adopted written resolutions
which stated that petitioner declared the bonuses because its
officers contributed substantial services to petitioner.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011