- 35 -
This Luna factor weighs against the finding of a joint
venture between petitioner and Crocus during the taxable periods
at issue.
2. The Contributions, If Any, Which Each Party Has Made to
the Venture
Petitioner and respondent agree that both petitioner and
Crocus made significant contributions to foreign trade shows.
This Luna factor supports the finding of a joint venture between
petitioner and Crocus during the taxable periods at issue.
3. The Parties’ Control Over Income and Capital and the
Right of Each To Make Withdrawals
Petitioner and Crocus did not have mutual or joint control
over capital and income generated by foreign trade shows.
During the taxable periods at issue, petitioner or ECI collected
and controlled fees from exhibitors located outside the former
Soviet Union, which accounted for 90 percent of all foreign trade
show fees, and Crocus collected and controlled fees from
exhibitors located in the former Soviet Union, which accounted
for the remaining 10 percent of all foreign trade show fees.
Nothing in the record indicates that Crocus had control over or a
right to make withdrawals or to receive distributions or payments
from the share of receipts collected by petitioner and ECI during
the taxable periods at issue. Crocus is only a party to the
royalty agreement between petitioner, Crocus, and ECI with
respect to an offset of a debt. Nothing in the royalty agreement
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011