CTA Case No. 238 (Decision)

./ X� � � � � � � � � � � X Th. l� ount� 331. � and 432. * or tot 1 s of 1,16 � ' cb ere allegedly paid as exc �� eft- ti nc:y if..l..C_ __ e y r 1949, t 1 19~2 res ctively� � itl ~an else � talves 1� rtu- eet t of t � City of Jl 49, � r1n e Vice- ~ a de t o ric n e riter of ' e. * a AI 1) stic co or tion 1 su e � , xeept ll lnaur ce. Por t � taxa s in t1oner fil his Lne tuma Show1n ther in oll in d tat 1949 ��������������������� x t on� ���� ubj ct o tax. ount oft x e ��� ��������� �� 1 , 81 � 255

� No. 23 - 2- �����1��ex�����ti�o�n��a����������� eu ct o ax � ount of ex e ��������������� Leset ount Of tax w1t held ���� ount et1ll � ���������������� ���������������������� Peraona x ~ tiona ����� ~.~~~. . . subj c:t o ax � paya 1 per bi ���������������� el ���� ���������������� t.axea du n tax ret me or tb� years d 19~2. fter vestl tian end verlfi tl den � 'I n ry, 9~ . i au ����� nts a aina t� ode in ~he defi- ti ncy ������ ta were e:r:riv~ at foll �� �������� ��� ~~L~e~��n�ttaoxf tax due ����������� �� �� 2, 224. 04 1 dy aa ��� ��� � �� fitiency tax due ��������� �� ��� � .~ 256

��� J � 238 18,14 � dt 3 , 232. ~ ��� � �������������� - � � l ion r � t� . c! c �� t ty, ��t eferr -on ., t t v ue. t�~ I ' c tf corr ct t eI � 1' � t � for e nd in o er to avoi i :1 er paid t f �� a ef ci ncy � co � �H 1949, 1951 i 2� � paid 7 , 1964, ebruary 1~. 19~4 . � ruary 11, 1.9 � � peti.tione:r ile re 0 t his clel for fund Of , 331. � nd ..3 , or al 1 , 16 . 3 , r r 1 tin tllq d xces p Y� 2 57

� 23 - 4- nta c efici ncy c 1949 . l ~l d 19 2 , o n t e last ay cr1bed in ecti n v � t � tttlon f1l� t in ta t et 'ion for ~efund. r pe iti tu e of t -�- n �� :r llow nc�� c: ny a ~e e � nc � eop 0 ld �� to � � t e flc � - ... ,. 25

$ o. 238 - !5 - tion r's loyer � th AlUPI ., diebur the s to th t xpayer h rein �� repreaentation an ent�~- ainm nt � en��� T � bocks of 1 l d ee not G tt of 1, 35U. sa given to the p itioner to be ap t s r resent t1on e nse (r. c. 34 , e l23t & ec. , (q) le 123. 1�� of Court) and herefo.r � it �hould be d1s llowed a e uetio � Tl i consists of t o items , na ely, th� lot�l bills in the s of ~. and t 1e 1la Hotel l llt in the ;m t ly .rt o 1949� t e petitioner nt bro d by is loy r. t � l, official sin � tr � att ense& h n~UHed waa t is aunt of 3'!j5. in illa fo lod ing and ~~eala a iaon ot 1 1n r ity. In 1 ch ... t t:ra- vel as fo t rsuit f � busin sa Of petlti ne � e loyer� � 1 l pl1d. t a dir ctly to tne � York otel. nainly � th ta y�t- hereln di not persona ly . Oflt or in f~m the ount of 355. ch wA� d to th� ew or Hotel .nd he � thoul th r fore n be dded to an .includ~ �� part of his gro� 1nco for the 'I r 1949. it zegard to the il. Hot 1 billa tn the � o t of 229. , end �� th p t it on r correctly 259

o. 23 ' -6- points t � th1 it repr s te l ving uaa-tera d 1 ed by 1 loy�r and l� of the � ~haracter �s t 1t. . fo% living tt rs for the yeara 19~1 �nd 19~2. Hence , pas� UPon tn a e t<>g�t er tenee allowanc� for 19~1 1952. y � k d 1 1n 1 :ut fort y~ars 9~ nd 1~~2, i . e., � all an~e fo% ~ving qu rtezt rant d h pet1tione~. r� %8 1n estion. th~ petition r aa fUJ'� ... n1a d y 1$ loyer a lling ouae er. he d ente.rt 1. e c any cuet d 9tt sta. r ou�� y pa lor n 1rental of t � al � u xpentes fo~ ties u~ in, like til e!ep ne , we :r:1.e:a.ty, ter. etc. e ret� :r:oas inco e Of pet tlone.t'. � e.r and, tb� petitioner claimS that � r�tal and �ub�i�� tenc allow�nee was lo the convenienee nd benefit of his loy ~. and that only \e val e to hl of s cb 1ivlng qu rterG :t owat year ould bi coru�idere taxabl�� n short, the iatue ir. this r g r<l , 1� 11�be\hez or not the r ntal ellowanc f rn1sh�d to t e p titi r by Ia lo- Y�~ 1 tex ble a& p rt of s nc � 260

-- -- � o. 238 -7. ve just deeid d he 1 est on 1n the case of rson vs. U ctor of Int m l enue , �T. � s o. 37, J 26. 19~7. Th facts in the tical e t � ly differeno ~hur r.- ile the :ta y r ezein , alv � is Vice- re 1 n �� Y� n �c � in dis oatn Of e�t on ch we have o ut, h�ld ., . 2 61

� o. . ... n t e a d r consi �~ ion , w ind no It r �� to devi te f ou rulin it ence, we are of the opinio hat all nee f livi I art a grant oner for t ,ear� 19~1 19 2 , 111 ot el ill� ld tn ' 1 49, should be ean�ld z d �� dd1tlonal c ens � tlti er , end in~luded �� p o :tbe ye r� 1n q eti � the eence ny ev denc: t e on nzy , � n that, t e cos~ o t � rof nta n oner�a ra ls e value -b reof o e 1 l ne � &Zt of 1a taxabl� inc � n vl o the fo o!n c tl ez t ons , the � iciency t .... t na 0 � ount ��� ��ltd ������.�.�.�.�.��.���..��..��.��..~~~~~ ��� s Defiel ... . ch � e � of ye r :1.94 , e oun cl 13 � � o ha, nd :the retponden � er by o o efun the 1 ount to t � lti r. d.tiei cy co tax ����� ent t y rs 1951 a d l9~2 are her by af i � t ., 262

-�� o. 38 - 9 .. refund of t e ounts paid s defitiency inco ax fo th laid y ars 11 her by d.nied. nila , h 1p inea , l � 29 , 1957. Ir ., 2 6 3 .