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          prepared the subject returns relying upon that information.                 
          Roach did not tell Jung that, during the subject years, the                 
          Centurion sailed in the Ensenada, Puerto Vallarta, and beer can             
          races, that individuals slept on the Centurion, and that                    
          individuals fished on board the Centurion; Jung believed                    
          otherwise as to each of these matters.  Jung also was not told              
          about the individuals who were on board the Centurion during the            
          relevant years.  Roach told Jung that the Centurion was used by             
          petitioner as a conference/meeting room for its staff and as a              
          place to write, and Roach led Jung to believe that Roach simply             
          met individuals on board the Centurion while it was moored at the           
          yacht club.  Roach also led Jung to believe that meals were not             
          eaten on board the Centurion.                                               
               Roach signed under penalties of perjury 1998 and 1999                  
          property tax statements for the Centurion, and he submitted those           
          statements to the Office of Assessor for the County of Los                  
          Angeles.  Roach reported on the 1998 property tax statement that            
          the Centurion’s use was “recreation”.  Roach reported on the 1999           
          property tax statement that the Centurion’s use was “pleasure”.             
                                       OPINION                                        
          1.  Court’s Perception of Petitioner’s Witness Roach                        
               Petitioner’s primary witness at trial was Roach.  On the               
          basis of our view of Roach when he testified, as well as on the             
          basis of our consideration of his testimony in the light of the             






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Last modified: May 25, 2011