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treated as an asset of Ocean City HK for any of the years under
consideration, and no persuasive evidence was introduced for us to
conclude that the tip account belonged to the restaurant.
In her posttrial brief, Ms. Ng claims that she did not own the
tip account but rather it was owned by Ocean City HK, that certain
deposits into the account were counted twice by respondent, and
that disbursements to her from the account were loans. The record
in this case belies these claims.
Ms. Ng and her brother had complete control over the tip
account. Although the source of deposits into the account may have
been tips received by Ocean City HK employees, a substantial
portion of the withdrawals from the account went to Ms. Ng or for
her benefit. We therefore find that Ms. Ng controlled the tip
account and treated it as her own.
The parties stipulated that $98,911 of the deposits in the tip
account were not included in respondent's adjustments because that
amount was transferred to Ms. Ng's Bank of America account and
already had been counted in determining her reconstructed income.
Ms. Ng has not shown that other amounts were counted twice.
Further, we are not convinced that the withdrawals from the tip
account were loaned to her, or that she intended to repay any such
alleged loans.
Nonetheless, we believe some disbursements from the tip
account were for the benefit of Ocean City HK shareholders other
than Ms. Ng, who in effect acted as agent for Ocean City HK in the
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