- 2 -
Held: The advances were debt, and P is subject to
the sec. 884 excess interest tax provisions. Held,
further, sec. 884 and regulations interpreted--excess
interest tax provisions apply. Held, further, the
questioned assets are includable in the excess interest
tax computation.
Michael Rosenthal and Thomas E. Busch, for petitioner.
Jonathan J. Ono, for respondent.
GERBER, Judge: For the taxable years ended September 30,
1989, 1990, and 1991,1 respondent determined deficiencies in
petitioner's Federal income taxes in the amounts of $35,529,
$71,692, and $84,331, respectively. Respondent also determined
an $8,433 addition to tax under section 6651(a)(1)2 for 1991.
The issues for our consideration are: (1) Whether
petitioner is liable for excess interest tax under section
884(f)(1)(B) for 1989, 1990, and 1991; (2) if petitioner is
liable for the excess interest tax, whether certain assets should
be included in the taxable base; and (3) whether petitioner is
liable under section 6651(a)(1) for failure to timely file a
return for 1991.
1 All taxable years shown in this opinion, although
expressed simply as years, refer to taxable years ended Sept. 30
of the referenced year.
2 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the period under
consideration. Rule references are to this Court's Rules of
Practice and Procedure.
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