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different from the annual assessment rate and on a base that did
not necessarily take into account all of the deposit liabilities
assumed by Metrobank pursuant to the purchase. The purpose of
the entrance fee was, as stated, to prevent dilution of the Fund.
Whether the rationale for the actual entrance fee imposed by
12 C.F.R. section 312.4 (1991) is limited to that stated purpose
is not clear. Possibly, the fee imposed by 12 C.F.R. section
312.4 (1991) was designed to make up for what, in hindsight, was
an inadequate annual assessment because, when that assessment was
fixed, the conversion transaction was not taken into account. On
the other hand, perhaps it was a reserve contribution that would
serve only to reduce next year’s annual assessment. Given the
complex nature of the annual assessment system, without testimony
from officials of the FDIC or other information, we do not know
what the assessment of the entrance fee was designed to
accomplish.
4. Conclusion
Petitioner was required to prove a fact: that the payment
of the entrance fee created no significant future benefits that
rule out a current deduction. See INDOPCO, Inc. v. Commissioner,
503 U.S. 79 (1992). Petitioner has failed to do so. Petitioner
has failed to prove its entitlement to a deduction on account of
payment of the entrance fee pursuant to section 162(a).
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