Gale Encyclopedia of American Law Volume 6 P18 fully illuminates today's leading cases, major statutes, legal terms and concepts, notable persons involved with the law, important documents and more. Legal issues are fully discussed in easy-to-understand language, including such high-profile topics as the Americans with Disabilities Act, capital punishment, domestic violence, gay and lesbian rights, physician-assisted suicide and thousands more. | 158 KIDNAPPING section 162 a the court identified two lines of interpretation one held that the term meant usual and customary the other held that the term was intended to distinguish payments of a capital nature from payments of a recurring nature which were thus deductible currently. In Bertolini the court held that this second line of interpretation was more consistent with legislative intent and thus ruled that kickbacks made by the Bertolini Trucking Company were tax deductible. In a very similar case the same court came to a different conclusion. In Car-Ron Asphalt Paving Co. v. Commissioner of Internal Revenue 758 1132 6th Cir. 1985 Car-Ron Asphalt Paving Company had paid legal kickbacks to Nicholas Festa the same contractor to whom Bertolini Trucking had paid kickbacks. As in Bertolini the tax court had ruled that such payments were not tax deductible because they were not necessary and ordinary. As not in Bertolini the appeals court ruled that the payments Car-Ron had made to Festa were not necessary business expenses because throughout its 13-year history the company had obtained nearly all of its contracts without making such payments. Beginning in the 1970s the health care industry became the particular focus for government efforts to prevent kickbacks. As health care costs escalated in the late 1980s and 1990s efforts to prevent fraud intensified resulting in 1995 in the passage of the medicare Fraud Statute 42 . 1320a-1327b . This statute prohibits kickback schemes such as those in which hospitals pay physicians in private practice for patient referrals and drug companies and medical device manufacturers pay physicians to prescribe their products to patients. The Medicare Fraud Statute makes it illegal for anyone to pay or receive any remuneration including any kickback bribe or rebate to induce the recipient to purchase order or recommend purchasing or ordering any service reimbursable under Medicare or medicaid. Some experts in the area
