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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