- 2 -
Held: The payments at issue are not “annuities”
as that term is defined in the treaty, because they
were not paid “under an obligation to make the payments
in return for adequate and full consideration” as
provided in the treaty. Accordingly, the payments are
subject to U.S. tax as determined by R.
Donald L. Feurzeig, for petitioner.
Paul R. Zamolo and Rebecca Duewer, for respondent.
OPINION
GALE, Judge: This case is before us on the parties’ cross-
motions for summary judgment under Rule 121.1 The issue for
decision is whether certain payments received by petitioner from
a lottery operated by the State of California (California State
Lottery) are exempt from U.S. taxation pursuant to the Income Tax
Convention, Nov. 20, 1975, U.S.-Isr., Hein’s No. KAV 971 (U.S.-
Israel Income Tax Treaty or treaty).
Summary judgment is intended to expedite litigation and
avoid unnecessary and expensive trials. Fla. Peach Corp. v.
Commissioner, 90 T.C. 678, 681 (1988). Summary judgment may be
granted with respect to all or any part of the legal issues in
controversy “if the pleadings, answers to interrogatories,
depositions, admissions, and any other acceptable materials,
1 Unless otherwise indicated, all Rule references are to the
Tax Court Rules of Practice and Procedure, and all section
references are to the Internal Revenue Code for the taxable years
in issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011