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Rule 702 of the Federal Rules of Evidence, which
governs the admissibility of expert testimony, provides:
If scientific, technical, or other
specialized knowledge will assist the trier of
fact to understand the evidence or to determine
a fact in issue, a witness qualified as an
expert by knowledge, skill, experience, train-
ing, or education, may testify thereto in the
form of an opinion or otherwise.* * *
Thus, expert testimony is admissible under rule 702 if
it assists the Court to understand the evidence or to
determine a fact in issue.
The parties agree that the subject issue, involving
the interpretation of section 1.861-8(e)(2), Income Tax
Regs., is a question of law and that there are no facts
in dispute. Thus, the question we must answer is whether
Dr. Ballentine's testimony aids the Court in understanding
the evidence. Dr. Ballentine's testimony provides economic
examples and policy reasons as to why the appropriate
measure of interest expense is net interest expense.
Petitioner's brief reiterates these same concepts and
includes the same examples.
We find that Dr. Ballentine's report and testimony
merely advocate petitioner's position and do not aid the
Court "to understand the evidence or to determine a fact
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Last modified: May 25, 2011