- 104 -
dated Subs". We do not construe those forms to include only
those subsidiaries of Amax that were in fact members of the
affiliated group within the meaning of section 1504(a) that had
Amax as its common parent. Based on our examination of the
entire record in this case, we find that the reference to "con-
solidated subsidiaries" in the Forms 872 in question is to each
of the subsidiaries of Amax that joined in the consolidated
return that Amax filed for 1984, 1985, and 1986, regardless
whether each of those corporations was in fact a member of that
affiliated group. Petitioners, which have the burden of proof,
have not established to the contrary.
Petitioners were specifically identified and listed in the
Form 851 (Affiliations Schedule) that listed the corporations
that were included in the 1984 consolidated return.40
Alumax, on behalf of petitioners' group, executed a docu-
mented dated August 12, 1985, that was entitled "ELECTION TO BE A
MEMBER AS OF JANUARY 1, 1984" and that was signed by John A.
Brader as vice president of Alumax. That election document
provided:
Based on an Agreement dated January 30, 1984[41] by and
among Alumax Inc., AMAX Inc., Mitsui and Co., Ltd. and
Mitsui and Co. (U.S.A.) Inc. as amended that gives AMAX
Inc. 80% of the voting power of all classes of Alumax
stock entitled to vote, Alumax and each of its subsid-
iaries hereby elects under United States Treasury
40 The record does not contain the Forms 851 for 1985 and 1986.
41 The record contains no document that purports to be an agree-
ment dated Jan. 30, 1984.
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