Crop Care Applicators, Inc. - Page 4




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          which outlines charges for the application of pesticides at                 
          different volumes per acre.                                                 
               The written contracts petitioner entered into have no                  
          explicit provision addressing fuel tax credits but provide that             
          petitioner will be responsible for “wages, salaries, bills and              
          taxes for labor, materials and equipment used in performance” of            
          its services.  The contracts further provide:                               
                    Company will pay Contractor for the work performed                
               under this agreement as outlined in Exhibit “B”                        
               attached.  No tax (or an equivalent amount) or any                     
               extra charge shall be added to the price or                            
               compensation as specified in that Exhibit unless                       
               otherwise expressly stated.  Unless otherwise expressly                
               provided, Contractor shall pay all sales, use, excise                  
               and any other applicable taxes now or hereafter                        
               enforced upon or with respect to or measured by the                    
               materials, equipment and work furnished by the                         
               Contractor or the compensation paid to persons employed                
               in connection with performance by Contractor, and                      
               Contractor shall indemnify Company against any and all                 
               liabilities and expenses of whatsoever nature resulting                
               from Contractor’s failure to pay the same.                             
          Upon completion of its services, petitioner issues invoices to              
          its customers stating the number of acres treated, the unit                 
          price, and the total payment due.  Petitioner’s customers during            
          the years in issue never had nor requested information about the            
          amount of fuel that was expended by petitioner in applying                  
          pesticides on their land.                                                   
               Before establishing Crop Care Applicators, Inc. in 1984, Mr.           
          Duncan managed the pest control department of a farming company             
          that farmed 40,000 acres in California.  As manager, Mr. Duncan             






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Last modified: May 25, 2011