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they had engaged in an elaborate scheme to transfer the funds
without the knowledge of the Korean and U.S. customs and tax
authorities.5 Bok Kim testified that she repeatedly delivered
small amounts of Korean currency to Sung Bae Kim, an airline
employee whom she identified as Ok Kim’s younger brother.6
According to Bok Kim, the airline employee would arrange for the
conversion of the won to U.S. currency and for Korean tourists,
unknown to either Bok Kim or petitioners, to deliver the funds to
petitioner Chung Kim at his store.7 Bok Kim could not recall the
precise amounts of money she transferred on each occasion but
believed the amounts to be in the range of 5 to 7 million Korean
won (approximately 5,000 to 9,000 U.S. dollars).8
We find that Bok Kim’s testimony lacks credibility, is
inconsistent with the record in this case, and does not credibly
establish a nontaxable source for the unexplained deposits.
Under the circumstances, we are not required to, and we do not,
5Chung Kim testified that he did not request a bank wire
transfer because it is “illegal” to take out more than $10,000
from Korea. He also stated that he wanted to avoid any “tax
consequences” such a transfer would entail for either him or his
niece.
6Chung Kim identified Sung Bae Kim as his wife’s nephew, not
her brother. Sung Bae Kim did not testify.
7Neither Bok Kim nor petitioner identified the names of any
of the individuals who allegedly delivered the funds to Mr. Kim.
8Despite allegedly transferring nearly all of her father’s
substantial estate with no true expectation of repayment, Bok Kim
also testified that she had come to Court to help her uncle
“because it’s not like I had done much for him before.”
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Last modified: May 25, 2011