CTA Case No. OC-377 (Decision)

-- � 377 - - - - - - - nd --n � - . - .C I i-- l fr h i n. 0 r c 1 Ct r (no ) of n1 f l)fr 2 J. 7 nd s r- (; u � 1 1!;4 un n .h e iv s f 1,2 n s t ju 1 i n for to im nd f) no 0 ri 0 of cc ou nt~ . - f upon lnf n.:. Cr- nc i ~ J y2� "t.. tion r 'I I tion y hid nc. n k in un k 0 cc nt h r us 0b t ,.., t 11 h . ..,, i n n ~ ' h t' n of ch r n , pt - rbo k � h - tion l. � pr Mi il i.e:. d v c n 5 � r n ' ch c k l. tn ot 0 ks ccou '0 0 r tt �. , a ot 1 c llan 0U cu n (T.x � J) . �Th s 320

.., .. o .:;r I� o. 11 ..: �.T� � ... 2 .... boo ' d .ocu .n � - t r n unr ( U( t�o (2 ) 0 0 ~ c b n in i Of s in � n 0 c 2 1 ct r i n. h (I d n ut -1 h �X on, y sl cu- Chin f .... i - 1 'n n f !nt n nu ' ub 1 d n . n 0 ( xh � 11, an . ... + t).,...) 0 r- 2. l t - h. 12 ). oc k 0 '/ s r in 0 n n1 ic n .m ~ into Gli 4 h ch h n1 i ( xh � 2 , 12- 12- ). th f nt t r �1 b n r ceou t f tr n 1 t�on llo n un c 'Jr � d . i l p uf y 1 ..CT u en m h r nu ctt � :r UC ' du y 1. o jun nd U, nd - t t ' p t ( "" x, � 14 ) ,. tt ...., i t l. C>n ( ~ xh. 16) + ta .~ 32 1

, cD. 1 � 377 9 �1 . < $ ncy +X , d fr o , J r y � At th ' 1. � tc (\ p lth v d X 1� .. 0u eo co c. 1 � y. c v y .t t r ' -n � b 21, '5 , flA h n �~ g, th r ni .. p � but f o h s 1 f e h a0 ht u li c 0 ny n"' 0 h J not 1 to 1 1 n h c �� ; , onrl n i s d 9 n 1tio .r 0 ci ncy 1 J ta U'CC in unt o 77 � ) t lu rn u t c iv f 1,2 And , ju icia lti . fo f i '4t: y .h nd ~ nq v n y ma nt In it cc unts ( ~X � ). P- f ic y nd urc ar i h ot 1 u Q 2 J .- 77 � � r(' com u fo 1 t vro ����� � ���� ��� � � 322

0 C IO:J � c��� c '). 377 -- .. .. . .. .. 19, 6. 19 �� �� � � �� th r n ---...:;;;;:~........, � � � � �� � ��� ����� """""""1_�,...........~ C ;LL .CT� v � 0 �~i n ~. nt i n d 1n he n to h v b , hteh r t ".'. r <> t n h is t dt c- Qf';b ~ (txt � l ). s ( llo � t.t, t one or ita ly h ntativ . f il d t o p ar 0 X 1 in th ~n ri � L. 'J 0 .y .r rcn 1 � 1956 ( Ex � >. 0 a , o hT' (')} rtli)O h l ter t a�t i t 01'1(?1:, th x- t "l"1 from. .. f , a �in on p. t ttton 't wrote a e .. tn t e m or ndum no !') ' $'\I b o �; th pap 0 ,no :) l?n., to i .. f .-d to Cf') I romts. th . tax cas9 by p ropo~in y th :Lei nc. nl .. t 1 t.h unt ... Dur in h . fi rs 323

� 37 -- n qu �p on pp 1 t t i Co n Ci n h I e f th qu 1 t. .Y 00 {) �� (2) () n t 0 0c �� h J . 1 t th ,� th � 1 n n tn � , in J '"'�OUI'!i n n n .. nc l h t. . nrl n by n con ~ f n ,. ;. 325

o c-c:a.,N - C. T. l\ . ) 3 .).. 3 7 ... 1 d th p ov � i.o � f 1 p, lie b to hi c / 't P � cu en nd not book'S s d as t. : (J b i :hf! a in q � t- t , n a own d by p tit on dr .. ~l!' ' t i t 0 ,., f t VO I) cl ~ l c ' ~ in l s n r1 p OS �f "" th zddc n d oo � c a ... r- umpt'on hat th sam r 'ln"''d by it ( .t�) e. 69 (j l . ul � 1.2 ule:S * Cou j ) .. , lq, h 1':' f r inc n ti. n(: ~ -p o n rsh~ by c -d i . L ev p i n c n o~ bP ov rcoff ffier l rl is m 1 a f own~ rshlp J na ,mc.h as boo s co tai . nam.f'!$ of Chin s vho re t .xti.l lth tl �io r d n 'p on r houl it Pl ch d 1 invo c of ceo n . li s 0\ hat lt had nAv~ r ;) y . t' .. n. ac- . titJn it th . er.son �'Jh) I:. f'>J f. P. !.1 lll:'" u d in h aid no cbo ~~ ~ . ..J@ fact p. t' l. iane d not pr e 0 r u h ~: UI ion f o� er- . hlp 11 from t '- O"'S to of th oc m~nt . an no Ab(>Ok$ C""' n(then th conelu J. n hrt s m a.rP nw d y � Th c 1m ,ba t ha~ not bo k contai t. . lX nq o� QO 0 th rtn to th bu l, ~t thO il <; r~ e c .. t i 1 r C� :- 326

oncx I ~ .. C. T� � A ""' () . 11 -. onc111 bly inc n -l nt ith th eont nts of th not . ook whi . 1 ndicat x l � mt~1 p reh in y d th cor po dl n ric s ( .xl s. o- t o ' l2.�A to 12.... }� t fo ., f h o 1n1o � nd o hol h t tion :r o n th . unr .gi t r d not book or book /.:m� of i u i n .. An .nt r's c ntent n th t h tr nsl tlons of t ~ unr. ls er d ot books or b 0 $ . ceounts ' d by Hoqn. re no cor et. r sa ft, d t 1at s td Boon l. . ula y ..,ov n n n� h .f � hi sl ion of h u X' 1 < t d no book :r bo eeount �ritt n in t.he Ch n s ~ r u arly d cor et. ( .c . 69 (1) and (m), ul 123, Rul ).J----. p ti ion r 0 h 'v"" rt 1l b rd n ia on the lncorr c f) A 9 � th tran l tions. It hou d �' hav .x rt d ff ort o co fro ) �x mln~r Jn .oo and oi ou h nc1rr ctn f hi tr ns- 1 t . ons wht 1 h d < 11 th ch nces to do so . Th ., 1 xa, in~r On � v n Hoon l no L-2. net c no long~ b exa nl n d on h corr ctnes of - is n lat n ill not hirtl p ti ion r rm -~ dv e of it o.vn n gli nc r l 3 27

GI I � '377 �� - fu � v l on i h� h n n. c c I t n t ain 0 0� ho ,.. or c th t l / ' co /!C . c:m .1,. ran .. t' f ur t - t no a ond y �h 0 t t - ~ y :r o n �n t lts h n� boo .. un vi un t - c yf � rn n nt. - 1 c n ry v 1u urs n 1'.) 1f 1 -~ l trJ h , h tn- v .lid ty or l"t) of d f_:c ncy s n a of h pi ion so p i l i 1 ~,.. or fici y � uc in h ll'l'JU ' 7� � H ceo "I t 1c b h ld li # f r rni. i .. 1, r h Ut nd (C l 328

. . ., . 1 I � 1'1 � T . A. CA'"l. ' .. 1 � zuc 1 c v � 11 ct r f lnt n 1 c. ~v nu � � -zo. 2f16, 'j~tob 15. 19 t af� ft rn d :tn G; � Nos- L�l 7 n a d L�ll7 1, uly 31, �� ' 4t n .u.n v �c . eto~ 0 r 1 t!V t- b r 27, f in � � . t ..ll7 � Ju . h d cl � on of r� p n b by 1� it on.r h by 0 r y u f ,77 � iici n n u eharg fo i fro � 1 t ~,-) Jun 3 J, 1 5' , v hou orono c m nt to coet � ' no. il ' u t 27 , 3. 1 329