Court rejects $1B in 'phony tax deductions' by DowFebruary 27, 2013 @ 3:31 pm
WASHINGTON (AP) - A federal court in Louisiana is rejecting transactions by The Dow Chemical Co. that created $1 billion in what the U.S. Justice Department calls "phony tax deductions."
Justice said Wednesday that the tax-reduction scheme was created by Goldman Sachs and the law firm of King & Spalding.
It involved creating a partnership that Dow operated out of its European headquarters in Switzerland.
Justice said Chief Judge Brian Jackson ruled correctly in saying that the tax benefits created by the scheme were artificial and that the corporate structure was created to exploit weaknesses in the tax code, not for legitimate business reasons.
The judge also imposed unspecified penalties.
Assistant Attorney General Kathryn Keneally praised the decision, calling the tax-avoidance scheme "offensive to all taxpayers who pay their fair share."
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
A family fights to get back Buddy after he was mistakenly adopted to someone else
50 Years Ago
A legendary DJ tells the story of The Beatles' first Seattle show
The SR 99 closure will cause big backups across Seattle for next 4 days
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.