- 53 -
The final type of giveaway addressed by the parties was
separately discussed on brief and appears to have been given
principally for purposes other than motivation. Concerning the
Boss Day Planners, Mr. Deihl testified: “As a new distributor
came on board he received a day planner which also contained all
the policies and procedures of KareMor and the code of ethics
that they were to follow and what was dismissible and where we
could terminate even the independent distributor for immoral acts
or things of that nature.” The record contains copies of checks
payable to Boss Day Planners, all dated 1999, which total
$136,444.35. Petitioners, through KareMor, claimed $113,544.35
of this expenditure as a deduction for marketing in 1998.
On brief, respondent concedes that a valid business purpose
supported the outlay to Boss Planners but maintains that the
charges were contested in 1998 and not paid until 1999.
Referencing the checks just described, respondent states: “each
check is dated after April 14, 1999, the date of settlement of
the dispute between Petitioners and Boss Day Planners.”
Petitioners’ response to this argument, consisting in its
entirety of two sentences, is as follows: “As to the Boss
Planners marketing expense, Respondent recognizes (opening brief,
p.66) that the payments were made but not until after April 14,
1999. However, 1999 is a closed year and thus, the deduction
should be permitted for 1998.”
Page: Previous 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 NextLast modified: May 25, 2011