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by GITIC.14 The total amount of interest petitioner reported on
its 1995 Form 5472 coincides with interest paid to GITIC and GXE
as recorded in petitioner’s general ledger and reported in the
September 8, 1998, letter. The evidence supports a finding that
petitioner had two outstanding $2 million loans, one from GITIC
and one from GXE, and we so find.
2. Whether Any Interest Attributable to the GITIC
Loan Was Included on the Forms 5472 Attached to
Petitioner’s Forms 1120X
We now address whether any of the interest reported on
petitioner’s Forms 5472 was interest paid on account of the GITIC
loan, which respondent concedes is exempt from U.S. taxation.
Petitioner has the burden of proving that respondent’s
determinations are incorrect. See Rule 142(a)(1); Welch v.
Helvering, 290 U.S. at 115.
(a) 1994
The record is devoid of any credible evidence establishing
that the amount of interest paid with respect to the GXE loan was
different from that reported on the amended Form 5472 that
petitioner attached to its Form 1120X. Consequently, unless we
14The details of the GXE loan regarding the date of the loan
and the applicable interest rate, as described in the Sept. 8,
1998, letter, are not consistent with the facts and documents
regarding the 1990 GXE loan that were included in the parties’
stipulations of facts. Nevertheless, Mr. Wong confirmed in his
testimony at trial that, during the years in issue, petitioner
had an outstanding loan from GXE in the face amount of $2
million.
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