- 49 -
far greater stretch. Hence, these amounts would appear to be
business gifts subject to the strictures of section 274 and not
substantiated as required therein.
With respect to purchases made at Neiman Marcus, Mr. Deihl
testified: “we purchased items there and gifts for all the
advisory boards and for the Crowns at all the conventions and
things of that nature. We also purchased the--some Christmas
gifts for the employees from Neiman Marcus every year.” He
offered additional details in the following colloquy on direct
examination:
Q For what purpose did you use Neiman Marcus,
what kinds of purchases?
A Well, it would be three separate things. One
would be gifts from their gift gallery to the
individuals.
Q Stop there. Gift from their gift gallery to
be used as gifts or to be used as rewards?
A To be used as, the purchase could be either
one, for rewards or gifts. I cannot determine what
that is from there. But they also supplied some of the
gowns for the ladies in question that would come from
Neiman Marcus also.
Q To your knowledge any personal expenditures?
I should say expenditures in Neiman Marcus for personal
use? Without looking at the documents, just a general
question, Mr. Deihl, just a general question.
A Well, most of the time when we did things at
Neiman Marcus on behalf of the company we used the
company’s credit card, an American Express card. In
private uses we’d use our Neiman Marcus charge card
which is a separate structure entirely.
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