- 3 -
opinion) with regard to remaining issues in the case. See Nestle
Holdings, Inc. v. Commissioner, T.C. Memo. 1995-441, affd. in
part, revd. and remanded in part 152 F.3d 83 (2d Cir. 1998). In
the 1995 opinion, the Court (1) held that petitioner and
Carnation Co. (Carnation) were entitled to interest deductions of
$131,739,791,3 (2) established the fair market value of various
Carnation assets, and (3) concluded that Carnation (i.e.,
petitioner) had to recognize capital gains on the sale of those
assets to Nestle S.A., a foreign entity. The Court ordered the
parties to submit computations under Rule 155.
1995 Advance Tax Payments
On December 15, 1995, after the release of the 1995 opinion,
but before the Court entered a decision, petitioner paid
respondent the following amounts (advance tax payments) on the
deficiencies as anticipated by petitioner for the tax years in
issue:
Taxable Year Ending Advance Tax Payments
Dec. 31, 1983 $6,774,252
Dec. 29, 1984 31,222,100
Dec. 28, 1985 114,964,176
Initial Tentative Refunds and 1996 Motion To Strike
On August 7, 1996, a stipulation by the parties with regard
3 During 1985, Carnation was acquired by and became a
subsidiary of Nestle Enterprises, Inc., petitioner’s predecessor.
For 1985, Nestle Enterprises, Inc., and Carnation filed a
consolidated return. Petitioner has filed its petition as a
successor in interest to Nestle Enterprises, Inc.
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