- 18 -
function as an ongoing and independent production or marketing
enterprise, a definitive determination as between the two becomes
unnecessary.
1. Implications From the Evidentiary Record
The Schedule C attached to petitioners’ 1998 Form 1040
characterizes Shrike Cars as an “Automobile construction”
business. The cursory, single-page “5 YEAR FINANCIAL
PROJECTIONS” document submitted by petitioners bases the listed
gross sales figures on the number of “Mark I” and “Mark II”
vehicles (labels not otherwise used in the record) sold, from an
estimated 4 in 1999 to 260 in 2003. Hence, some of the evidence
does appear to reflect that Shrike Cars’ intended function was to
operate in the field of automobile production, and we begin our
analysis with consideration of the record in light of this
characterization.
A December 14, 1994, document purportedly summarizing the
Shrike Cars business lists several “AD&E concepts that are ready
for development with an investor/manufacturer”. No mention is
made of any postconcept operations. The document would therefore
seem to imply that, as of late 1994, Shrike Cars was not yet
engaged in actual commercial development, much less production,
of any particular automotive concept.
This impression is reinforced by the three automotive
proposals to third parties contained in the record. Dated April
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011