MATTER OF FAULKNER, DAWKINS & SULLIVAN v. STATE TAX COMM'N


63 A.D.2d 764 (1978)

In the Matter of Faulkner, Dawkins & Sullivan, Petitioner, v. State Tax Commission, Respondent

Appellate Division of the Supreme Court of the State of New York, Third Department.

May 4, 1978


Petitioner is a securities brokerage firm. It pays to its "registered representatives" a commission of one third of the commission the firm receives from the representative's sales. Mainly for the cosmetic purpose of bestowing more prestige upon these representatives, petitioner admitted them as partners with a nominal (approximately 1%) interest in the profits of the firm. Petitioner continued the same commission arrangements and deducted these payments as salaries on its...

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