- 3 -
Commissioner, 102 T.C. 666, 674 (1994). A genuine factual issue
will be material only if its determination one way or the other
would affect the outcome. Anderson v. Liberty Lobby Inc., 477
U.S. 242, 248 (1986). Ultimately, if there exists any reasonable
doubt as to the facts at issue, the motion must be denied.
O'Neal v. Commissioner, supra at 674; Sundstrand Corp. v.
Commissioner, supra at 520. We set forth a summary of facts
relevant to our discussion that do not appear to be in dispute;
the facts are stated solely for purposes of deciding the motion
and are not findings of fact for this case. Fed. R. Civ. P.
52(a); Sundstrand Corp. v. Commissioner, supra at 520.
Background Information
Beginning in 1972, petitioner researched and developed
inventions. The inventions were placed into limited
partnerships. The partnerships then paid A-Alpha to perform
research and development. The Hong Kong corporation then
subcontracted all of its research and development contracts, in
varying proportions, to wholly owned U.S. and Hong Kong
corporations and to independent subcontractors. Respondent
asserts that pursuant to section 881(a), of the amounts paid by
the limited partnerships, a flat 30 percent is due on that
portion of the funds which reentered the United States under a
subcontract.2 Further, respondent determined that petitioner, as
2 There is no tax treaty between the United States and Hong
(continued...)
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