- 46 -
the orders placed by the member stores at the food shows. They
reduce petitioner’s gross receipts and are not defective
patronage dividends.12
C. Conclusion
For the audit years, petitioner had no items of gross income
on account of petitioner-delivered currency paid by vendors to
member stores as show money.
IV. Conclusion
In the light of the foregoing,
Decision will be entered
for petitioner.
12 Our conclusion is, of course, based on the assumption
that the petitioner-delivered currency paid to member stores
flowed through petitioner, as passed-on rebates, in the manner
described supra in sec. III.B.1 of this report. We do not decide
that manufacturers’ rebates paid directly to retail customers are
necessarily deemed to pass through the retailer. Such a rebate
was addressed by the Commissioner in Rev. Rul. 76-96, 1976-1 C.B.
23, suspended in part by Rev. Rul. 2005-28, 2005-1 C.B. 997,
which describes an automobile manufacturer’s rebate paid directly
to qualifying retail customers and gives no indication that the
rebate was considered to have flowed through the retailer.
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