- 51 - as part of the divorce settlement); and (4) loans. In view of the compensation petitioner earned, to suggest that an employer would advance funds in excess of $2 million to an employee to satisfy an employee’s divorce obligations is beyond implausible. We must determine the credibility of a witness on the basis of objective facts, the reasonableness of the testimony, and the demeanor of the witness. Quock Ting v. United States, 140 U.S. 417, 420-421 (1891); Wood v. Commissioner, 338 F.2d 602, 605 (9th Cir. 1964), affg. 41 T.C. 593 (1964); Dozier v. Commissioner, T.C. Memo. 2000-255. Petitioner’s testimony was inconsistent, contradictory, implausible, and not credible. Ms. Chen is of Chinese ancestry and resides in Taiwan. She cannot read or write English and testified through an interpreter.18 Ms. Chen’s testimony, even giving due regard to the language barrier, revealed a lack of basic knowledge about her business relationship with petitioner. She testified that she had been the CEO of NCPL since her husband, Mr. Seki, died on October 6, 2001, and that NCPL had only two employees, Susan Lung and petitioner. Although she was allegedly the CEO of NCPL, a company with only two employees, she did not know what petitioner’s salary 18 Ms. Chen’s attorney, Philip N. Jones, explained to the Court that it was “very difficult or impossible for her to tell what a document is about because of the language barrier”. He also stated that “the language barrier for my client is quite severe, and when she is handed a document in English, it’s as if I was handed a document printed in Chinese characters. She cannot read it.”Page: Previous 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 NextLast modified: March 27, 2008