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of the receipt stub as being "in consideration of release and
termination of agreements with All Patents Corporation Limited
and James J. Zand". An Ashland memorandum transmitting the
request for this check states that this check "will be used in
payment for the termination and settlement of all obligations to
All Patents * * * and James J. Zand under Letter Agreements dated
May 18, 1973, December 7, 1973, and April 4, 1974." This check
was returned and, subsequently, in early 1976 Ashland reissued
payment of the $265,000 to petitioner. This payment was
deposited to the Zand CNB Columbus account. On the 1976 CTC
receipts journal, 75 percent of this payment was allocated as a
commission for Diesel Power; 25 percent was allocated as a
commission for CTC. Petitioner reported 25 percent of this
$265,000, or $66,250, on his return for the taxable year 1976; he
did not report the balance of $198,750.
E. General Motors
In a document dated April 25, 1969, General Motors Overseas
Operations Division of General Motors (GM) appointed CTC as Sales
Representative to act in promoting the sale by GM of diesel
locomotives, related spare parts, supplies, and equipment
manufactured by GM for use in Iran. In consideration of CTC's
services as sales representative, GM agreed to pay CTC a
commission of 3 percent of the sales. The document also
provided:
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