Gabriel M. Daya, et al. - Page 16




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          10-percent penalty plus $10 cost for payments after April 10,               
          1995.  Laila made a payment of $1,541.05 for property taxes with a          
          check from the household checking account dated March 23, 1995.             
               The real property tax liabilities on the Foster City                   
          residence for the 2 subsequent fiscal years were each due in two            
          equal installments under the same terms as the property tax for             
          the preceding year.  For FYE June 30, 1996, the real property               
          taxes assessed against the Foster City residence were $3,086.               
          Mahmoud made a payment of $1,543.43 with a check dated December 2,          
          1995, drawn on Fuad’s Glendale Federal bank account and signed by           
          Mahmoud.  Laila made a payment of $1,543.43 with a check from the           
          household account dated March 20, 1996.  For FYE June 30, 1997,             
          the real property taxes assessed against the Foster City residence          
          were $3,122.  The property taxes were paid with checks from                 
          Morhaf’s personal checking account dated December 1, 1996, and              
          December 29, 1996, in the amount of $1,560.58 each.                         
               On his 1995 and 1996 Federal income tax returns, Gabriel               
          claimed his father as a dependent and head of household filing              
          status.  Gabriel also claimed deductions of $9,303 and $9,189 for           
          home mortgage interest and deductions of $1,532 and $1,543 for              
          property taxes in 1995 and 1996, respectively.                              
               On his 1995 Federal income tax return, Morhaf claimed his              
          mother as a dependent and head of household filing status.  He              








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