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sufficient control over Diesel Power even after he sold his
remaining 40-percent interest in 1977 to be taxed on its income.
Petitioner's relationships with Diesel Power vis-a-vis each
business arrangement differed substantially, and we have
concluded that ownership of Diesel Power was by no means the only
test by which to ascertain control over its earnings. Therefore,
we will examine the facts related to each company with which
petitioner dealt to determine the extent to which petitioner or
Diesel Power was in a meaningful sense independently in control
of the earning of the income in question.
A. Lockheed
The income with respect to payments from Lockheed involves
payments Lockheed made to WHIP, Diesel Power, and Sunvaco during
the years 1972 through 1976.
Petitioner contends that WHIP was intended to be a
completely separate entity that was created at the direction of
Dr. Fallah. Petitioner further contends that he had been
instructed to deposit 80 percent of WHIP's earnings to a Swiss
bank account for Dr. Fallah; the remaining 20 percent was to be
deposited to an account for the benefit of Diesel Power.
Petitioner indicated that neither he nor Diesel Power received
any of the WHIP funds. He also stated that the $610,000 he
withdrew from the WHIP account in 1978 was the Diesel Power share
remaining from the WHIP arrangement.
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