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Additions to Tax
Year Deficiency Sec. 6651(a)(1) Sec. 6656
1990 $ 5,823 $ 1,456 $ 582
1991 136,238 34,060 13,624
1992 479,445 119,861 47,945
1993 265,732 66,433 26,573
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
After concessions, the issues for decision are whether,
under sections 894, 1441, and 1442 and under a treaty between the
United States and Canada, interest paid by petitioner is subject
to withholding tax and whether petitioner is liable for additions
to tax for failure to timely file withholding tax returns and for
failure to make deposit of withholding taxes.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
At the time the petition was filed, petitioner’s principal
place of business was located in Ontario, Canada. Petitioner
(Del Commercial) was incorporated in the State of Illinois. Del
Commercial invested in and owned industrial real property located
in the United States and leased the property to tenants.
In 1990, Del Commercial participated in a series of related
and essentially simultaneous financial transactions with a number
of its affiliated foreign corporations. As set forth in the
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