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Third, we do not accept petitioners' assertion that
Beaufort Leaf or petitioners realized no proceeds of, or
economic benefit from, Beaufort Leaf's participation in
the scheme. The testimony of both petitioners focuses on
the list of unreported checks for 1991. Each petitioner
testified that he never received the proceeds or economic
benefit from those specific checks. Each petitioner also
testified that he did not receive moneys or economic
benefit from Beaufort Leaf other than what is shown on
his income tax returns. However, the testimony of both
petitioners leaves open the possibility that moneys or
economic benefit was received by other persons or entities
related to them. It also leaves open the possibility that
moneys or economic benefit was received from someone other
than Beaufort Leaf.
In sum, petitioners have not established the facts
underlying their argument that the unreported sales
determined by respondent were outside the scope of the
business of Beaufort Leaf or that petitioners did not know
of or receive any economic benefit from the unreported
sales of tobacco.
We also disagree with petitioners' argument that
respondent failed to meet the Government's burden of
establishing a link between petitioners and the underlying
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