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the equipment), thereby reducing Comdisco’s alternative minimum
tax.
Between 1993 and 1996, Comdisco had a wholly owned subsidiary,
Comdisco Investment Group, Inc. (CIG). CIG’s executives included:
Frank Trznadel-–president; Robert Snyder--executive vice president;
and Paula Ortmann–vice president.
CIG assisted Comdisco in structuring sale-leaseback
transactions of computers involving foreign investors and U.S.
corporations (domestic corporations), referred to by Comdisco as
cross-border equipment leasing transactions. CIG presented to
domestic corporations proposals for cross-border equipment leasing
transactions between Comdisco, partnerships made up of the foreign
investors, and the domestic corporations.2 The proposals stated in
relevant part:
COMDISCO EQUIPMENT LEASING CONCEPT
Comdisco has developed a cross-border equipment
leasing transaction that produces permanent U.S. tax
savings through the advantageous use of U.S. tax rules
concerning the acceleration of taxable income from rents.
Unlike most Western countries, the United States
treats as taxable income any amounts received as prepaid
rent or as proceeds from a sale, without recourse, of a
stream of rental payments. These amounts are income even
though they are unearned and are attributable to future
years.
2 Comdisco had entered into transactions similar to the
transaction at issue in these cases. Prior transactions involved
the participation of the following four partnerships: Fillupar
Leasing (1991); Astropar Leasing (1991); Compupar Leasing (I)
(1992); and Compupar Leasing (II) (1992).
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