Court nixes $1B in Dow Chemical tax deductions feds call "phony"

WASHINGTON A federal court in Louisiana is rejecting transactions by The Dow Chemical Co. (DOW) 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."

[derukugi08]

This was done in accordance to the tax code as it is written, the rules were followed. It's unfortunate, but legal. This lower court decision will be overturned.

[Tank_Commander]

So maybe someone does watch 60 minutes: http://www.cbsnews.com/8301-18560_162-20091720.html
I'm always surprised by those who think just the republicans are the wall street ******, though: https://www.youtube.com/watch?v=x0k2PmF-o5Q

[keote_poet]

taxloopholes that republicans are doing everything thay can to save..

[vernique3]

no worries for Goldman Sachs as the supreme court will overturn the lower court decision. must protect our corporate democracy/oligarchy.

[aintfakin]

hdc77494 says:
We ALL practice legal tax avoidance, nobody wants to pay more than they have too. If you get too aggressive, the IRS slaps your hand and you cut a check.
None of these people are "thieves" for trying to reduce their tax liability.
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the hell they aren't? You must be a spokesman fOR these thieves.
The law allows for increasing penalties for the increase in the dollar amount of the infraction. Check and see how much you have to steal as an individual to become a felon. I dont think it is even a hundred thousand dollars. If CITIZENS UNITED GIVES THESE CORPORATIONS RIGHTS AS INDIVIDUAL CITIZENS IN THE POLITICAL ARENA THEN MAKE THEM PAY THE SAME PENALTIES AS INDIVIDUALS......HARD TIME IN JAIL FOR THEIR MANAGEMENT

[aintfakin]

this is the kind of thing the republicans are fighting to preserve from the sequester. I pay 25% after the puny deductions I am allowed as an individual. I am tired as hell of these money sucking welfare deadbeat money redistribution artists.

[aintfakin]

you or me would go to jail for this sort of thing.
Anyone from Dow or Goldman Sucks? Not by a greenback longshot.

[Wondering53]

Another sign our tax code needs to be changed!

[hdc77494]

We ALL practice legal tax avoidance, nobody wants to pay more than they have too. If you get too aggressive, the IRS slaps your hand and you cut a check.
None of these people are "thieves" for trying to reduce their tax liability.

[bckrd1]

Goldman Sachs involved in a tax scam. How shocking! I am sure the Republicans will do whatever they can to make sure Dow gets the 1 Billion $ deductions and put the burden on the elderly and poor because it is only fair that they protect these job creators