Texasgulf Inc. and Subsidiaries, as Successor in Interest to Texasgulf Inc. and Subsidiaries - Page 23

                                       - 23 -                                         

          Industry”.7  The Parsons OMT Report was based on a review of 213            
          OMT returns that represented about 80 percent of the total OMT              
          paid from 1968 to 1980.  The mining operators which filed those             
          returns had about 68 percent of Ontario’s mineral production                
          during that period.                                                         
               William J. Hallett (Hallett) was respondent’s expert.  He              
          testified about the OMT returns that Parsons analyzed.  Parsons             
          prepared a memorandum that rebutted parts of Hallett’s testimony.           
               We are not bound by the opinion of any expert witness, and             
          we may accept or reject expert testimony exercising our sound               
          judgment.  Helvering v. National Grocery Co., 304 U.S. 282, 295             
          (1938); Fitts’ Estate v. Commissioner, 237 F.2d 729, 732-733 (8th           
          Cir. 1956), affg. T.C. Memo. 1955-269; IT & S of Iowa, Inc. v.              
          Commissioner, 97 T.C. 496, 508 (1991).                                      
               3.   Petitioner's Study of OMT Taxpayers                               
               Respondent concedes that the Parsons OMT Report included a             
          representative cross-section of OMT taxpayers.  Only one                    
          significant taxpayer did not give its OMT tax returns to Parsons            
          for the study.  Respondent's expert stated that this taxpayer's             
          information would not have materially changed the results of the            

               7Kumara Rachamalla was petitioner’s other expert.                      
          Respondent objected to our consideration of his report and                  
          testimony.  Canadian law precluded him from revealing the data              
          upon which he based his opinion and answering questions about               
          this data on cross-examination.  He agreed with Parsons’                    
          conclusion in every material aspect.  However, we have not                  
          considered his report or testimony in deciding this case.                   




Page:  Previous  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  Next

Last modified: May 25, 2011