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Diesel Power's name in New York City. At least $2,470,000 was
placed in Diesel Power's foreign accounts in 1973 and 1974.
Other commission payments were deposited to Diesel Power's
FNCB accounts and to the Banque de Paris accounts in Geneva,
Switzerland. With respect to the Swiss accounts, the evidence
shows that there were substantial sums deposited. While the
burden of proof is on petitioner to show the lack of accumulated
earnings and profits in his controlled foreign corporation under
section 1248(h), the evidence shows that Diesel Power's earnings
and profits were far in excess of the $2,483,188 shown on its
financial statements as of the close of its fiscal year ended
March 20, 1975. Many of the funds deposited to the Bank of
America account disappeared into the secrecy of Swiss bank
accounts, leaving no trace as to whether they were ever
transferred into Teheran and possibly included on the financial
statements as earnings and profits of Diesel Power. However,
since Diesel Power did not want to have funds deposited to
Teheran banks, it is likely that such amounts did not end up in
Teheran or on Diesel Power's financial statements.
We conclude that Diesel Power's earnings and profits through
1974 included not only the $2,483,188 reflected on its financial
statements, but also the funds deposited to the Swiss bank
accounts and the Bank of America account. Adding the commissions
deposited to bank accounts in the name of Diesel Power outside
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