Westland Corp. v. Commissioner of Revenue

• Court: Court of Appeals of New Mexico
• Writing for the Court: COWAN; WOOD, C.J., and SUTIN
• Citation: Westland Corp. v. Commissioner of Revenue, 503 P.2d 151, 84 N.M. 327, 1972 NMCA 147 (N.M. App. 1972)
• Decision Date: 27 October 1972
• Docket Number: No. 949,949
• Parties: WESTLAND CORPORATION, Appellant, v. COMMISSIONER OF REVENUE, Appellee.

Page 151

503 P.2d 151

84 N.M. 327

WESTLAND CORPORATION, Appellant, v. COMMISSIONER OF REVENUE, Appellee.

No. 949.

Court of Appeals of New Mexico.

Oct. 27, 1972.

Vance Mauney, Botts, Botts & Mauney, Albuquerque, for appellant.

David L. Norvell, Atty. Gen., James D. Bryce, Bureau of Revenue, Asst. Atty. Gen., Santa Fe, for appellee.

OPINION

COWAN, Judge.

Westland Corporation appeals from a Decision and Order of the Commissioner of Revenue pursuant to § 72--13--39, N.M.S.A.1953 (Repl.Vol. 10, pt. 2, 1971 Supp.).

We affirm.

This is a second appeal. The background factual situation is set out in the earlier appeal, Westland Corporation v. Commissioner of Revenue, 83 N.M. 29, 487 P.2d 1099 (Ct.App.1971). This court there determined that Westland was engaged in business, furnishing services to three other corporations with the latter paying to Westland funds in an amount calculated to cover Westland's operations on their behalf. These funds were held to be taxable under the New Mexico Gross Receipts and Compensating Tax Act. However, any monies received by Westland as agent or trustee of the three corporations and disbursed by it in payment of their debts or obligations were held not to be compensation for services and therefore not taxable.

The court was unable to determine, (1) whether the total amount of the disbursements were used for the operation of Westland, or (2) whether Westland, as agent or trustee for the three corporations, used a portion of the disbursements for the expense and operation of each of the three corporations. The case was remanded to the Commissioner for a determination as to the use of these monies and whether they were all gross receipts and subject to tax.

Another hearing was had, following which the Commissioner filed his Decision and Order, determining that all of the monies received by Westland from the other three corporations during the auditing period were received for services rendered the three corporations and were monies expended in the performance of Westland's corporate functions. The Commissioner further determined that none of these monies were paid out for debts or obligations owing by the three corporations.

Westland now attacks the Commissioner's Decision and Order as not being supported by the evidence. We disagree with Westland's position.

At the hearing, the receipt and disbursement of the monies in question was reflected by three exhibits II, III and IV to the Stipulation of Facts. O. D....