Robert E. Iles and Monica M. Iles - Page 32

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          $4,345 in sales tax that SSI paid on the Rolls Royce as                     
          performance bonuses to Robert.                                              
               On February 16, 1983, title to the Rolls Royce was                     
          transferred as a gift from Robert, as trustee for the Riago                 
          Trust, to Robert individually.                                              
               Petitioners listed the Rolls Royce, valued at $90,000, as a            
          personal asset in the net worth statement that they submitted in            
          connection with a 1983 loan application.  After the $30,000 loan            
          was approved, the bank took a security interest in the Rolls                
          Royce.                                                                      
               The $83,345 that SSI paid in 1982 to buy the Rolls Royce               
          ($10,000 plus $69,000 plus $4,345) was 1982 income to                       
          petitioners.                                                                
          P.  Saberliner Jet Aircraft                                                 
               On February 5, 1982, Robert, acting individually and on                
          behalf of the Rise Trust, entered into an agreement to buy a                
          Saberliner Jet Aircraft, hereinafter sometimes referred to as the           
          Jet,22 for $1,205,000.  This total was to be paid as follows:               
          $25,000 as a deposit that day, $375,000 at delivery, and a 1-year           


               22   There was not any declaration of trust or other formal            
          document establishing the Rise Trust.  There were not any Rise              
          Trust bank accounts.  The record does not indicate any "activity"           
          of Rise Trust other than being the named purchaser of the Jet.              
          As far as we can tell from the fragments of information in the              
          record, the Rise Trust is merely a name used by petitioners and             
          Doyle as a "straw man" in connection with their intended                    
          coownership of the Jet, with Robert having a 52-percent interest,           
          Monica having a 24-percent interest, and Doyle having a 24-                 
          percent interest.                                                           



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