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Corporation as Brunswick or petitioner.) These cases were
consolidated for purposes of trial, briefing, and opinion.
On the date that Brunswick filed the petitions herein, Saba
and Otrabanda had been liquidated and no longer maintained a
principal place of business.
Respondent's adjustments in these cases are based on
alternative determinations. The central issue for decision is
whether the partnerships' purported contingent installment sale
transactions (hereinafter CINS transactions) should be
disregarded for tax purposes because they lack economic
substance.
Unless otherwise clear from the context, the following
words, their derivatives, and related terms are used for
narrative convenience only to describe the form of the disputed
transactions: "invest", "purchase", "gain", "loss", "borrow",
"loan", "pay", "sale", "distribute", "note", "agreement",
"commission", and "interest". By our use of such terms, we do
not mean to suggest any conclusions concerning the actual
substance or characterization of the transactions for tax
purposes. Unless otherwise indicated, section references are to
sections of the Internal Revenue Code in effect for the years in
issue, and Rule references are to the Tax Court Rules of Practice
and Procedure.
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