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This Luna factor weighs against the finding of a joint
venture between petitioner and Crocus during the taxable periods
at issue.
7. Whether Separate Books of Account Were Maintained for
the Venture
There is no evidence that separate books of account were
maintained for a joint venture between petitioner and Crocus.
Receipts, expenses, and other items with respect to foreign trade
shows during the taxable periods at issue are recorded in
petitioner’s trial balances. However, the trial balances provide
no indication that profits or losses were split between
petitioner and Crocus. The record contains no corresponding
trial balances for Crocus.
This Luna factor weighs against the finding of a joint
venture between petitioner and Crocus during the taxable periods
at issue.
8. Whether the Parties Exercised Mutual Control Over and
Assumed Mutual Responsibilities for the Enterprise
Each party was responsible for paying its trade show
expenses. Crocus was reimbursed for all its direct expenses by
ECI. While both parties assumed mutual responsibilities for
conducting the trade shows, there is no evidence Crocus had any
control over the 90 percent of trade show receipts collected by
petitioner and ECI. Under the contracts with Expocentr,
petitioner was solely responsible for payments of rent for
leasing pavilions. If an exhibitor located outside the former
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