- 379 -
The transfers of funds by Equitable Leasing to Holding Co.
and Zion were not done as an accommodation to Equitable Leasing
to allow Equitable Leasing to complete investment offerings and
to close transactions in compliance with Federal and State
securities laws.
OPINION
Kanter has the burden of proving that he did not receive
commission or fee income from Equitable Leasing in 1983 as
determined by respondent in the notice of deficiency. He has
failed to do so. We conclude that the funds paid by Equitable
Leasing to Holding Co. and Zion in 1983 were generated by
Kanter's activity in providing investors. That these funds were
paid for services personally rendered by Kanter is supported by
Mallin's testimony that he paid Kanter through Equitable Leasing
commission fees to find investors for his deals. The earned
income was simply directed by Kanter to be paid by Equitable
Leasing to Holding Co. and Zion, both being Kanter's controlled
entities. Such anticipatory assignments of income were
ineffective to divest Kanter of income he earned in the
transactions.
We reject Kanter's uncorroborated, self-serving testimony
that Holding Co. and Zion were only providing an "accommodation"
to Equitable Leasing by accepting the funds in question.
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