Gustafson's Dairy, Inc. - Page 3

                                         -3-                                          
               2. The Dairy Association ................ 8                            
               3. Petitioner's Sales to Winn-Dixie and Others ..... 9                 
               4. Competition .................... 11                                 
               5. Diseases ..................... 11                                   
               6. Petitioner's Environmental System ......... 13                      
          C. Petitioner's Finances ................. 14                               
               1. Petitioner's Capital Expenditures Program ..... 14                  
               2. The Super Trust .................. 19                               
               3. Petitioner's Expansion Plans ........... 21                         
               4. Insurance ..................... 22                                  
               5. Petitioner's Financial Condition ......... 25                       
               6. Petitioner's Bardahl Calculations ......... 28                      
               7. Petitioner's Business Practices .......... 29                       
                                         II. Opinion                                  
          A. Accumulated Earnings Tax ................ 30                             
               1. Basic Rules .................... 30                                 
               2. Burden of Proof .................. 31                               
          B.   Whether Petitioner Was Formed or Availed of To Avoid                   
               Shareholder Level Taxation ............... 32                          
               1.   Whether Petitioner Intended To Avoid Shareholder                  
                    Level Taxes .................... 32                               
               2. Factors Identified in Treasury Regulations .... 35                  
               3. Conclusion .................... 37                                  
          C. Reasonable Accumulation for Business Needs ....... 38                    
               1. Background .................... 38                                  
               2. Herd Expansion and Pollution Control ....... 40                     
               3. Capital Improvements ............... 43                             
               4. Debt Retirement .................. 46                               
               5. Self-Insurance for Replacement of Herd ...... 48                    
          D. Conclusion ....................... 50                                    
          E. Environmental Tax ................... 51                                 
          F. Negligence ....................... 51                                    
                                I.  FINDINGS OF FACT                                  
               Some of the facts have been stipulated and are so found.               
          A.   Petitioner and the Gustafson Family                                    
               1.   Petitioner                                                        
               Petitioner is a Florida corporation the principal place of             
          business of which was in Green Cove Springs, Florida, when it               
          filed its petition in this case.  Petitioner produces raw milk              





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011