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either all, or none, of the taxpayers subject to it, regardless
of variations in how the tax applies to each taxpayer subject to
it.
Respondent contends that petitioner may not use aggregate
data to show that the OMT is creditable. Respondent also
contends that if we adopt petitioner’s position, the Commissioner
would be required to evaluate each OMT taxpayer every year to
determine whether its OMT payment was creditable. We disagree.
Use of aggregate data is appropriate because a tax is or is not
creditable for all taxpayers subject to it. This conclusion does
not require the Commissioner to evaluate each OMT taxpayer every
year to determine whether its OMT payment is creditable.
3. Whether the Processing Allowance Must Be Intended To
Compensate for Nonrecoverable Expenses
Respondent contends that, for the OMT to be creditable, the
processing allowance must be intended to compensate for
nonrecoverable expenses. Respondent points out that the
processing allowance is computed without considering the amount
of nonrecoverable expenses and contends that the amount of one
bears no predictable relationship to the amount of the other.
Respondent contends that the fact that the processing allowance
exceeds nonrecoverable expenses for most OMT taxpayers does not
make the OMT creditable because that relationship is
coincidental. We disagree.
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