- 17 -
selling expenses. Letters from the Israeli administration state
that “Flocktex did not pay dividends to shareholders * * * but
instead paid a special commission.”
We further observe that petitioners raised in their post-
trial briefing the alternative contention that even if the
payments from FIL were considered compensation, they were
nonetheless foreign source income. Since identifying the amounts
as general limitation income would appear to be equally
consistent with this scenario, we find the Forms 1116 reveal
little about the transactions at issue. A Form 1116
categorization potentially supportive of multiple
characterizations does not outweigh the balance of the record.
Hence, whatever can be inferred from petitioners’ Forms
1116, we simply see no honest and consistent respect for the
alleged substance in either reporting or other representations
and actions that would justify a result different from that
reached in our memorandum opinion.
To reflect the foregoing,
Appropriate orders will be
issued granting petitioners’
motions to amend, petitioners’
motion for reconsideration, and
respondent’s motion for
reconsideration.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Last modified: May 25, 2011