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the examination. Mr. Chapple has been petitioner's chief
financial officer and senior executive vice-president from
January 1, 1993, to the present. Prior to 1993, Mr. Chapple was
president of Worltek.
During the examination Ms. Hamilton issued 11 Information
Document Requests (IDR's) to petitioner. Ms. Hamilton asked for
the agreements and the basis of how the pricing, commissions, and
service rates were established between petitioner and ASAT, Ltd.,
as well as agreements between petitioner, ASAT, Ltd., and
unrelated parties. Petitioner never provided these documents,
though petitioner provided copies of invoices to show actual
pricing. By letter dated October 23, 1992, Ms. Hamilton advised
petitioner's tax counsel that she relied on section 6038A as her
authority to request the documents.
Ms. Hamilton requested a worldwide organization chart; Hong
Kong income tax returns filed by ASAT, Ltd.; an audited financial
statement of ASAT, Ltd., covering the period under examination;
internal financial statements of ASAT, Ltd., broken down by
product line and subsidiary location; and business plans, market
studies, feasibility studies, corporate minutes, etc., conducted
or developed by ASAT, Ltd., in relation to the organization and
expectations for petitioner. This documentation was requested
again in a section 6038A summons issued on October 5, 1993.
During a meeting on September 24, 1992, Mr. Schainbaum advised
Ms. Hamilton that petitioner would not produce the information
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