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Indian tribes each of which owns at
least 10 percent of the equity interests
in the entity, and
(iv) substantially all of the
management functions of the entity are
performed by members of qualified Indian
tribes.
For purposes of clause (iii), equity interests owned by
a member (or the spouse of a member) of a qualified
Indian tribe shall be treated as owned by the tribe.
(B) Qualified Indian tribe.--For
purposes of subparagraph (A), an Indian tribe
is a qualified Indian tribe with respect to
an entity if such entity is engaged in a
fishing rights-related activity of such
tribe.
The parties agree that petitioner operated the Denise W in a
"fishing rights-related activity". See sec. 7873(a)(1) and (2).
From this agreed starting point, petitioner argues that the
purchase of the Denise W and expenditures for associated
equipment and operating expenses are fishing-rights related and
that therefore the income from discharge of indebtedness incurred
to meet these expenses is fishing-rights related.
Every item of a person's gross income is subject to Federal
income tax unless there is a statute or some rule of law that
exempts the person or the item from gross income. HCSC-Laundry
v. United States, 450 U.S. 1, 5 (1981). Tax exemptions,
including those affecting native peoples, are not granted by
implication. If Congress intends to exempt certain income, it
must do so expressly. Earl v. Commissioner, 78 T.C. 1014, 1017
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