- 9 - 482 allocation is arbitrary, capricious, or unreasonable. Bausch & Lomb, Inc. v. Commissioner, supra; G.D. Searle & Co. v. Commissioner, 88 T.C. 252, 359 (1987); see also Altama Delta Corp. v. Commissioner, 104 T.C. 424, 456-457 (1995); Seagate Tech. Inc. & Consol. Subs. v. Commissioner, 102 T.C. 149, 163-164 (1994). Neither the absence of tax avoidance motives, nor the existence of a business purpose, precludes respondent from reallocating costs under section 482 in order to reflect clearly the respective incomes of members of the controlled group. Central Cuba Sugar Co. v. Commissioner, 198 F.2d 214, 215-216 (2d Cir. 1952) (dealing with 26 U.S.C. sec. 45 (I.R.C. 1939), the precursor to section 482), revg. and remanding on this issue, 16 T.C. 882 (1951); Eli Lilly & Co. v. United States, 178 Ct.Cl. 666, 372 F.2d 990, 998-999 (1967); G.D. Searle & Co. v. Commissioner, supra at 359. C. Common Control Petitioners are commonly owned corporations, owned in equal shares by the owners either individually or with their respective spouses, and are, thus, "controlled taxpayers" within the meaning of section 482. See sec. 1.482-1(a)(4), Income Tax Regs. D. Arm’s-Length Charges The parties have stipulated, and we have found, that the primary purpose of BKK is to provide management and administrative support services to the other 13 members of the group. BKK provided such services to the purchasing members, andPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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