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affidavit of an executive indicating that petitioner is ready to
present additional evidence about the creation, existence, and
termination of the ESOP. Although this demonstration might
provide more specificity as to the details concerning the ESOP,
in our estimation these additional facts would be irrelevant to a
determination whether Chrysler could deduct amounts it paid to
redeem its stock from the ESOT. The uncontested facts reveal to
our satisfaction that the origin and nature of the claim that
gave rise to the claimed deduction was inherently capital.
Chrysler’s employee-shareholders demanded payment, at market
prices, for their Chrysler common stock. As we have held,
well-established case law, as well as the provisions of section
311, preclude the deduction of the amounts which Chrysler paid to
satisfy that claim.
Each argument of the parties has been considered, and we
have rejected those arguments not discussed herein as meritless.
Accordingly,
An appropriate order will
be issued.
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