Affiliated Foods, Inc., A Corporation - Page 28




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         constitute taxable income to a taxpayer there must be (1) the                
         presence of a claim * * * [of] right to such receipts, and (2)               
         the absence of a definite, unconditional obligation to pay the               
         same to another.’”  United States v. Miss. Chem. Co., 326 F.2d               
         569, 573 (5th Cir. 1964) (quoting Farmers Coop. Co. v.                       
         Birmingham, 86 F. Supp. 201, 214 (N.D. Iowa 1949) (citing                    
         Commissioner v. Wilcox, 327 U.S. 404 (1946))).                               
              Petitioner-delivered currency came into petitioner’s hands              
         on the understanding that petitioner would in short order deliver            
         the currency to the vendors whose promotional allowance accounts             
         had been debited, or whose checks had been cashed, to provide the            
         currency.  Petitioner lacked meaningful control over petitioner-             
         delivered currency, and neither its receipt of checks from                   
         vendors, its withdrawal of currency from the bank, nor its                   
         delivery of that currency to vendors can, alone or together,                 
         serve as the basis for charging petitioner with having received              
         rebates from vendors.  With respect to this narrow aspect of the             
         show money operation, petitioner merely served as a conduit,                 
         providing the vendors with liquidity from their own funds.  We do            
         not see that petitioner effectively exercised any more control               
         over petitioner-delivered currency than it did over vendor-                  
         provided currency.                                                           
              We end our discussion of control inconclusively because, so             
         far as we understand respondent’s control argument, it is                    







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