- 291 -
complete dominion'", including illegal earnings. James v. United
States, 366 U.S. 213, 219 (1961) (quoting Commissioner v.
Glenshaw Glass Co., 348 U.S. 426, 431 (1955)); accord Rutkin v.
United States, 343 U.S. 130, 137-138 (1952); Ianniello v.
Commissioner, 98 T.C. 165, 173 (1992).
We have held that the payments made by the Five to IRA
related to the Prudential transactions are taxable 45 percent
each to Ballard and Lisle and 10 percent to Kanter and the
remaining payments made to IRA and Holding Co. are taxable 100
percent to Kanter. Our holding is supported by clear and
convincing evidence in the record.
Kanter entered into arrangements pursuant to which he would
use his business and professional contacts, including his
relationship with Ballard and Lisle, to assist members of the
Five in obtaining business opportunities or in raising capital
for business ventures. In exchange for his services, Kanter
received or shared in certain fees. Kanter established a complex
organization of corporations, partnerships, and trusts to
receive, distribute, disguise, and launder the payments from
these arrangements. The payments were made to entities
controlled by Kanter and then distributed through various means
to Ballard, Lisle, and Kanter, their family members, or to
entities established for the benefit of their families.
Page: Previous 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 NextLast modified: May 25, 2011