CGF Industries, Inc. and Subsidiaries - Page 28




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          U.S. 726, 738 (1989)); Gordon v. Commissioner, supra at 324                 
          (citing Commissioner v. Court Holding Co., 324 U.S. 331, 334                
          (1945); Helvering v. Clifford, 309 U.S. 331, 334 (1940); Grif-              
          fiths v. Helvering, 308 U.S. 355, 357-358 (1939); Professional              
          Servs. v. Commissioner, 79 T.C. 888, 913 (1982)).                           
               While we are not required to sustain respondent's determina-           
          tions solely because tax reasons affected the way in which                  
          petitioners structured the transaction, see Kornfeld v. Commis-             
          sioner, T.C. Memo. 1996-472, petitioners have the burden of                 
          proving that respondent's determinations are erroneous, Rule                
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  Where, as            
          here, the parties to the transactions are related, the level of             
          skepticism as to the form of the transaction is heightened,                 
          "because of the greater potential for complicity between related            
          parties in arranging their affairs in a manner devoid of legiti-            
          mate motivations."  Vaughn v. Commissioner, 81 T.C. 893, 908                
          (1983) (citing Bowen v. Commissioner, 78 T.C. 55, 78 (1982),                
          affd. 706 F.2d 1087 (11th Cir. 1983)).                                      
               We have confronted this same issue several times before in a           
          variety of contexts.  In deciding these cases, we have undertaken           
          an intensely factual analysis of the substance of each                      
          transaction.  See, e.g., Kornfeld v. Commissioner, T.C. Memo.               
          1996-472; Gordon v. Commissioner, supra at 326-327; Lomas Santa             
          Fe, Inc. v. Commissioner, 74 T.C. at 681.  Therefore, we believe            
          a brief review of the cases previously decided will paint a more            



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