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substantial underreporting of his income tax liabilities for the
years in question.
6. Failure To Cooperate With Respondent in Determining
Liabilities
Failure to cooperate in the examination and investigation of
tax liabilities is an indicium of fraud. Powell v. Granquist,
252 F.2d 56, 59-60 (9th Cir. 1958); Gajewski v. Commissioner,
supra at 200. Although petitioner asserts that he was
cooperative, he was cooperative only to a limited extent. His
cooperation was a defensive measure and incomplete. When
respondent's investigation began, petitioner defended his prior
actions by appearing to cooperate. He provided some of his books
and records to respondent's agents and advised his employees to
work with them. However, the books and records provided did not
include the millions of dollars in omitted income from Lockheed
and Ashland. Respondent's agents had to go to Lockheed and
Ashland to complete records of payments to petitioner. Thus, he
concealed the same information from respondent that he had
concealed from Mr. Giffin.
Petitioner also did not disclose to respondent's agents
complete information about the foreign bank accounts in which he
had an interest or his interest in WHIP. In fact, he withheld
information, even in responding to formal discovery, with respect
to the British bank accounts, Banque de Paris accounts in the
name of Diesel Power, and ownership information in WHIP, until
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