J.J. Zand - Page 89

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          seeking verification that certain payments had been made and had            
          not been improperly used.  One of the payments listed in this               
          letter was a "Payment to account of Interrep, S.A. for the group            
          represented by Mr. James Zand".  Petitioner testified that he               
          signed the letter at the airport when he was in a hurry, read the           
          affirmation at the end of the letter, and did not read the rest             
          of the letter.  He also indicated that he did not recall                    
          receiving any money from Interrep; there is no evidence to the              
          contrary.  We conclude that the record does not contain adequate            
          evidence that petitioner was sufficiently related to Interrep               
          that he should be taxed on its income.                                      
               With regard to the Ashland's commission payments to All                
          Patents in 1974 and 1975, we conclude that, although the Ashland            
          consultancy agreement was in All Patents' name, not petitioner's,           
          it was for the "personal services" of petitioner.  Ashland                  
          representatives testified at trial that they were under the                 
          impression they had hired petitioner to act as an intermediary              
          between Ashland and NIOC.  Furthermore, Ashland understood that             
          petitioner owned All Patents, at least in part, although there is           
          no concrete evidence to that effect in the record.  While                   
          petitioner testified that he understood Ashland's payments to All           
          Patents were for the benefit of NIOC, there is no indication that           
          Ashland intended to receive services from Dr. Fallah or any other           
          NIOC representative under the consultancy agreement.                        





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