CTA Case No. 88 (Decision)

o, t1 t .. l' 8 - � t 19't-7, t ort d 1 0 � 11 tt 1no t tural- r it .. 1 rr 0 1'- 1ze 11 1 t 0 19lt � he 1a u.e � nte or c

- c. I�S�I c � - 2- � at1 1� hetber or t t �a1 ot o,ooo.oo vu u euna b7 petitio er 1l1 1~7. 1t V I inC Dd t1tJ.o r 1 1, 11 lJ.al'lle tor t tax ....... U it vu obtai aa a loan, t uaea :at ~ 1a tbe .cJ. 1 ap � � tr t M ae" Ui � ert_...._.. tor et1Uo ~ t r1or to oraaniaatton ot t1onal UY � pora 1 , 1947. vu rJt 1n hia t"a~ �a r hJ t t l7 rovi With a � ott.r � - hat � only a441t1onal -��-.... ot 11Yel1- t aalaey ot � wit no torur (l ter I o) w1th a aaluy ot a t er tht that , wit aeYU others, orcanlae� 1n _ , l9't7 t.he at1onal 1ve- stock oduoe or or tio tor pur �� ot 111� atrallas t t at ot 1ta rcanS.aat1o , be ao �TJ t ill or- � aenioea v ��......, � &Ya1le4 ot u ��1- u at�� ' .oo lQ" , a copy ot Vbioh vu re t.a 1n evi �J tbat t loan vu ~ teed b7 � er o � c , ao raaoi..r or t~ oorporati , v ted t lO&IlJ t the 495

o. - 3- r rati v a 4 to aol att.r de th ot as1 that at the of 1ta t aol~tlon o o olu. el.7 o fUnd� r Naet a ; l oan t UH<ltr q J1 4, t or 41 r ot h&TiJl& tuJ- t untU ow, c~tor re o tHIIallG pq- t oa � vtt v. o t et\1 �� to u ... t t 4 ir111ata that the �� ot eti� \1 r 1 watoc � or r tton w a � 1Uo r 1111~7. ar U7 .,......,. 1nY'\r~ t reo at1on ot � Contere � 'tatt ot t t <eau ot ternal whioh N- 1'U to be11 � al~�c lo o t.t. t'ollov� at (l) t � t failed to reae t t r asor7 ote w va. 1nterY1 we � enta tn conneot1o with a1 invea (2) tbat t?M aU� � redi r , waa no' 1Jl a ti o1al o 1t1on to t loanJ (3) t it � ibcncU'bl� that aboul4 1-.. a lou ot o,ooo. wit out "requ..lr1Dc a soli seour1tJ to auar its a7M tf� ( ) t o at- t or 41 or or � ~..wt..t.~ t � er o � c t 1Uon- .1' 4.1 11 WA.M.I......'"" 496

� -At- .. to per t ~atter OCUU" tee 0 at_! o,ooo. OJ (6) �� prot� lonal oo1al at r latio 0 bia t r, ( ) � 1n 0 cur 1 � to it tbe latter houl but t to r cttc llT a � 71 � 216-220, t 1<11tT ~ .............._ ���"-ent�� in rYi 4 � ts, h 1nve te4 o,ooo.oo 1n the rod Cor1�~ti a loan/It . :to t thor to 1n c.r c �- aity ot � 0. f t tbat t pretlUC orr w � tirs in ter n ~lCe ot t ti poa1t1 1ft a 1 t c� at 497

o. t � r�p - ,2)5.- 0. t ...-1- AR'!'-..JG lo to atio � � t tavo dur a period. ot J"eU11 .1t een 1a o rth � it 1 &41~ , ceo t r�apo nt, 1v a lo ot � 0 v.lt.b- 0 1� r .,.....-nt. " It ap e a, ec 0 ~-�tli.J.& 1 � dt .'- b1a 0� t� .. l � ot ao 498

� tt t hl �crut ot ecor ure to t or auttt 1ent 3 or.U~ baa t � 0 so l � oat ona, r- tH t � - 499

- . o. ,.. -7 - il"J&Diael"� ot atate elsevber�, the o t t1o J.a�tntlre in ett- U r cau 6 tot t at t t his � I.� t t c e ot :- t ton L1"f to t e\ ~etitio r. l.o v. a 1 co .. q inste or 1 1 ot 1t 1 or n �� 1 fa � ot l' 1 con lus1 r lo ' ti wu J tlt!e iti � t h1ll 0t ct � t tt ranc � v. etitlone ot V1d w1 e hi r r t oo.oo i' r ct ent t r c Corpor - � t 1 5 00

t� st t t1t1o r of � or � V1c1e t to ��t which the c. a t 1s � t ot ,.. or t c or ...& .....~...... _ .eac::aua:n it t ta en- de � l s w eh t "eas� inn iY - r1c1 nt 501

- .. 10. 88 - 9- d the &I es ll OS in c 0 ot th .l �( ez � � � o. 1 9t eb. 13, 1956, att4. c. � � 29, 19S'7J yea v . C U. o. 42, 7 ' 1956, att � � � o. ov. 2~, 1 o �� oll. of t. av., c� �� o. 3 t lJ' 31, 19561 ��� � 139, a olu ~7 0 tr v c .eti or o, ax w. 1nal7, na a1n the �' 1Ddi.r c tul t lq courta e.r ror the - l.: o ora. t 1 sel �crut1n1ae 1 a t ocen.t t

- - - = - .. o. .., 10- ���� ll.co o t . :Y., au r�� 8 J.t now, that 1 poar &bus r uat1c ~ra � or v�u�ra croaa ~n t vUl 1 � aaa1at t �lt acari�� or or ct t ., or tJ.:.r ap l l t 1 � crl �� t &I tollovat # t rt 503 !I

-- � �ll- t ,t t t rt ., o � of t~ t r� 1Y: .. ,. 0 lo t �t - � a 1 � 1v Ol" 0, l p rt t1 io r )a co .... or t orthtt an 0 n 1 7. h. p t ti ar n- t co n- r t t ., � t - oea or osa1

o. .. 12 - r t .,-: r 1n an;r given y � op nina t t1ti er could ot .y,l<~..'"~ ot 191r7, d n 1ther c ot o,ooo.oo closi at t ,c ust t wifo o~ p t1tioner, wbo st with th t ot t hnob d to he taxable c ot tho epouses, alary ot o.oo 0 0 r � !hi t ot a i ute byr - ent. it ... _o 9 t tlo r is to � 11 4, i eb s n 4t eti� tio r llabUitr or o,o o.oo 1947 to orr- aet hi t � lr - l :t is, tiv � t1 p .. pt Yely cor � ton t ent to t 0 - acs ent roeul de asion 0 I nt vonu in t! er.fo rrtcj. duty 1B ent1- Ud 0 t t res ptio � s ent tally r ott t t Q tion not a pl,.. h d�c1 1 ap is r ~ rc r , ~t t pronoun.ee.tl'len�t t co ts. � � la, ove r c 505