- 6 -
order to produce the claimed $22 million tax deductions relating
thereto.
Background Relating to Leases5
In 1990, N.V. Brussels Airport Terminal Co. (Brussels
Airport), a Belgium corporation which financed, developed, and
managed the Brussels, Belgium, airport, purchased from ABN AMRO
Bank, N.V. (ABN), a commercial Dutch bank, certain computer
equipment and leased the equipment back to ABN, which was the end
user of the equipment. Brussels Airport financed the purchase of
5 Also in 1990 and later years, in addition to the series of
computer equipment leasing transactions, transfers, and payments
into trust (relating to what we refer to generally as the
Brussels Airport package of leased equipment) that are
specifically described in our findings of fact, two other series
of transactions were entered into involving petitioner, entities
controlled by IPG, other domestic entities, and two foreign
entities (namely, N.V. Reilly Chemicals S.A. (Reilly) and
Reibelco S.A. (Reibelco)), that also involved computer equipment
leasing transactions, transfers, and payments into trusts, and
that generated large ordinary tax deductions claimed by
petitioner, that were disallowed by respondent, and that are at
issue herein.
At the time of trial, however, none of the documentation
relating to the Reilly and to the Reibelco transactions could be
located by petitioner. Because the nature and purpose of the
Reilly and Reibelco transactions (for which no documentation is
available) are, in all relevant respects, similar to the
transactions involving the Brussels Airport leased equipment
described in our findings of fact (for which documentation is
available), petitioner and respondent have stipulated that the
resolution of the claimed tax deductions in issue relating to the
Brussels Airport leased equipment will also control the
resolution of the tax issues relating to the Reilly and Reibelco
transactions. In order properly to reflect the amounts involved
that are the basis for petitioner’s claimed $22 million tax
deductions, in our findings and opinion we generally use dollar
amounts that reflect cumulative numbers and cumulative dollar
amounts for the three series of transactions (i.e., our findings
and opinion generally reflect cumulative dollar amounts for the
combined Brussels Airport, Reilly, and Reibelco transactions).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011