Domer L. Ishler - Page 21

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          TCM’s unreported income for 1987 described above is taxable as a            
          constructive dividend to petitioner, and that petitioner is                 
          liable for tax on his distributive share of TCM’s income for 1988           
          from checks (a) payable to TCM but deposited in petitioner’s                
          personal checking account, the Double D account, or cashed                  
          without being deposited, and (b) payable to Camaro instead of               
               Petitioners contend that Camaro earned the money it received           
          from NSA.                                                                   
               2.   Whether Camaro Earned the Money It Received                       
               Petitioners contend that Camaro was essential to NSA because           
          Camaro could take title to the Shinwas and resell them to NSA and           
          Chrysler.  Petitioners also contend that Camaro could provide               
          essential services such as financing to meet Chrysler’s needs as            
          its needs for Shinwas grew.  We disagree; Camaro could not and              
          did not take title to or provide financing for $30 million worth            
          of Shinwas annually.                                                        
               Petitioners contend Camaro was essential to the Shinwa                 
          transaction because it had an export license which was needed to            
          ship the Shinwas to Chrysler in the United States.  However,                
          there is no evidence that Camaro had an export license or that              
          Camaro shipped the Shinwas.                                                 
               Petitioner did not tell Taylor about the NSA/Camaro                    
          contract.  Taylor was the TCM employee who handled Chrysler’s               

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