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We shall now examine the experts’ opinions and
methodologies, keeping in mind that respondent has the burden of
proof to show that the value the estate reported on its return is
incorrect.
C. Respondent’s Expert Witness: Dr. Scott Hakala of CBIZ
Because respondent has the burden of proof, we shall first
consider the conclusions of respondent’s expert witness, Dr.
Scott Hakala. Dr. Hakala concluded that the fair market value of
the estate’s stock on the alternate valuation date was $156
million. We explained to the parties after respondent rested his
case that we had grave concerns about Dr. Hakala’s valuation
methods and conclusions. We continue to have these concerns.
1. Dr. Hakala’s Background and Certifications
Although Dr. Hakala has a doctorate from the University of
Minnesota and is a chartered financial analyst, he is not a
member of the American Society of Appraisers (ASA) nor the
Appraisal Foundation. Dr. Hakala’s report also was not submitted
in accordance with the Uniform Standards of Professional
Appraisal Practice (USPAP). Dr. Hakala did not provide the
customary USPAP certification, which assures readers that the
appraiser has no bias regarding the parties, no other persons
besides those listed provided professional assistance, and that
the conclusions in the report were developed in conformity with
USPAP.
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