Riggs National Corporation & Subsidiaries, f.k.a. Riggs National Bank and Subsidiaries - Page 31

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               Petitioner points to Riggs I, 107 T.C. at 335, where we                
          said: “We are unable to ascertain * * * whether the Central Bank            
          received the pecuniary benefit based on those withholding tax               
          payments.”  This sentence, however, is taken out of context; it             
          does not represent a prior factual finding of this Court that the           
          Central Bank from 1984 through September 28, 1985, received no              
          pecuniary benefit.  The paragraph in our Riggs I findings                   
          containing this sentence reads:                                             
                    On the record presented in this case it is                        
               impossible to determine what entries were made on the                  
               respective books of the Central Bank and the National                  
               Treasury to reflect the Central Bank’s payment of                      
               withholding tax on the restructuring debt interest                     
               remittances.  We are unable to ascertain what, if any,                 
               entries were made to determine:  (1) Whether the                       
               Central Bank was reimbursed by the National Treasury                   
               for its withholding tax payments; or (2) whether the                   
               Central Bank received the pecuniary benefit based on                   
               those withholding tax payments.  The Central Bank’s                    
               ruling request raised these two matters, and the March                 
               1984 Brazilian IRS ruling discussed the two                            
               possibilities.  [Id.; fn. ref. omitted.]                               
          See also id. at 323 n.13, 361 n.47, 363.  A virtually identical             
          paragraph appears in our Riggs III findings.                                
               Contrary to petitioner’s argument, in Riggs I and Riggs III            
          we did not expressly find that the Central Bank did not receive a           
          pecuniary benefit with respect to those Brazilian taxes it                  
          withheld and paid from 1984 through June 28, 1985.  In Riggs I              
          and Riggs III, we did not reach, and did not have to decide, the            
          issue of whether the pecuniary benefit the Central Bank                     
          reportedly received with respect to those Brazilian taxes must              





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