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in its appeal. In accordance with the parties’ stipulation, we
hold CFC is liable for the civil fraud penalty for 1991.
II. Gift Tax Cases
Respondent determined that the disputed stock transfers are
taxable gifts pursuant to section 2503(a). Petitioners in these
gift tax cases contend that (1) the stock in CFC was not actually
transferred by and between Eddy Ben Cordes and Mrs. Cordes
because Eddy Ben Cordes and Mrs. Cordes did not knowingly and
voluntarily transfer CFC stock between themselves, and (2) all of
the transfers of stock at issue herein were incomplete gifts
because Mr. Cordes reserved and retained a power to revoke, or to
otherwise alter, any and all of the gifts of stock in the Cordes
corporations. Therefore, petitioners argue, none of the disputed
transfers constitute completed gifts for Federal gift tax
purposes.
Section 2501(a)(1) imposes a tax on the “transfer of
property by gift”. This gift tax applies “whether the transfer
is in trust or otherwise, whether the gift is direct or indirect,
and whether the property is real or personal, tangible or
intangible”. Sec. 2511(a); sec. 25.2511-1(a), Gift Tax Regs.
The terms “transfer * * * by gift” and “indirect” are designed to
encompass all transfers whereby, and to the extent that, property
or a property right is gratuitously passed to or conferred upon
another, regardless of the means or the device employed in its
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