- 29 -
PARR, J., dissenting: The majority, citing Frank Lyon Co.
v. United States, 435 U.S. 561, 583-584 (1978), states: "the tax
effects of a particular transaction are determined by the
substance of the transaction rather than by its form." Majority
op. p. 11. The majority also cites a long line of cases, see
Helvering v. Clifford, 309 U.S. 331, 336 (1940); Kuney v. Frank,
308 F.2d 719, 720 (9th Cir. 1962); Frazee v. Commissioner, 98
T.C. 554, 561 (1992); Harwood v. Commissioner, 82 T.C. 239, 258
(1984), affd. without published opinion 786 F.2d 1174 (9th Cir.
1986); Estate of Kelly v. Commissioner, 63 T.C. 321, 325 (1974);
Estate of Tiffany v. Commissioner, 47 T.C. 491, 499 (1967), that
require the Court to closely scrutinize family partnerships
"because the family relationship 'so readily lends itself to
paper arrangements having little or no relationship to reality.'"
Majority op. p. 12 (quoting Kuney v. Frank, 308 F.2d 719, 720
(9th Cir. 1962)).
The majority is "skeptical of the estate's claims of
business purposes related to executor and attorney's fees or
potential tort claims", majority op. p. 13, is not persuaded that
SFLP was formed to protect assets from will contests, does not
believe that a joint investment vehicle was the purpose of the
partnership, found that the formation and control of SFLP were
orchestrated by Mr. Gulig without regard to joint enterprise, and
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