Ronald B. and Annette C. Talmage - Page 83




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         or otherwise prevent the collection of taxes.  Rowlee v.                     
         Commissioner, 80 T.C. at 1123.                                               
              Respondent’s initial contact came from Japanese tax                     
         authorities.  When respondent’s agents made direct inquiries to              
         petitioner about the source of the funds advanced and the identity           
         of the owners of NCPL and TPPL, petitioner refused to disclose               
         information based upon the confidentiality agreement he signed               
         with NCPL.  The confidentiality agreement provided that petitioner           
         had to keep all company “Information” confidential.  However, when           
         the party requesting information and documentation was a                     
         governmental authority, the confidentiality agreement did not                
         prohibit petitioner from complying with its requests.  It only               
         required petitioner to give NCPL prompt notice and to cooperate              
         with it to obtain a protective order or other reliable assurance             
         that any company information unrelated to petitioner would be kept           
         confidential.  Even when respondent provided petitioner the                  
         opportunity to verify that he did not have bank accounts or                  
         signatory authority over bank accounts in Hong Kong, he refused to           
         sign the consent directives, claiming he so refused under                    
         instructions from his employer pursuant to the confidentiality               
         agreement.  There is no corroborating documentation from NCPL to             
         that effect.                                                                 










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