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On May 2, 1995, the Department of Taxation of the State of
Ohio sent Self Oil a demand for immediate payment of motor fuel
tax of $1,745,938.84 plus a 30-percent penalty for a total amount
due of $2,269,720.49. On May 5, 1995, the State of Pennsylvania
assessed excise tax liabilities, including interest and
penalties, against Self Oil totaling $6,599,435.56. According to
three separate notices of reassessment, all dated April 5, 1996,
the State of Pennsylvania notified Self Oil that on the basis of
the decision and order that the Board of Finance and Revenue
entered on February 27, 1996, Self Oil owed excise tax
liabilities, including penalties and interest, totaling
$7,029,251.32.
At some point, Mr. Self, Sr., and Mr. Self, Jr., concluded
that Self Oil could not continue in business if it remained
liable for the excise taxes asserted by Ohio and Pennsylvania.
Mr. Self, Sr., and Mr. Self, Jr., had discussions with their
attorneys, Maury B. Reiter and William Stewart, concerning a
method by which the business of Self Oil could be sold to
petitioner. Mr. Reiter wrote a memorandum dated January 6, 1996,
to his file concerning the “Pennsylvania State Motor Fuel Oil Tax
Appeal”, which states in whole:
On or about September 29, 1994, WKS [Mr. Stewart] and MBR
[Mr. Reiter] met with Robert Self Sr. (“Bob”) and Robert
Self Jr. (“Rob”) regarding an assessment for fuel oil tax
arising out of the circumstances which lead to a criminal
indictment and settlement. Specifically, the State claimed
a [sic] that Self Oil had engaged in a “daisy chain” for the
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Last modified: May 25, 2011