Long after Seagram's failed attempt to acquire Conoco, issues that arose from the tax treatment of stock exchanged in the tender offer remain unsettled
Article Abstract:
DuPont blocked Seagram's early 1980s attempt to take over Conoco but the tax treatment of shares exchanged in that deal remains a significant legal and legislative issue. Now pending before the 2d US Circuit Court of Appeals is a dispute betwen Seagram and the IRS concerning the definition of continuity of interest for tax treatment purposes. Also, Seagram's use of an apparent loophole to avoid taxes on its redemption this year of DuPont shares acquired in 1981 has led Congress to propose changes in the tax code.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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A recent decision holding invalid a corporate tax shelter is significant for the level of scrutiny the court used to examine purported business justifications
Article Abstract:
The US Tax Court's decision in the ACM partnership case regards a corporate tax shelter transaction structured to generate artificial capital losses and is the most important ruling on corporate taxation in recent memory. The court ruled that ACM bought and sold Citicorp Notes for tax avoidance purposes and that ACM sought to benefit from a loss artificially created through manipulation of the tax laws. The result was that ACM tried to recognize a phantom loss from a transaction lacking economic substance.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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The term 'willful' can assist criminal defense; when the meaning of the term is unsettled, clients' ignorance of the law may be a reprieve
Article Abstract:
Specific intent requirements for proving the willful element of criminal cases are one of the few Supreme Court rulings that afford an advantage to the defendant. Although ignorance was not a defense before the law in the past when law was closer to prevailing moral codes, the complexity of modern law has made the probability that an individual will knowingly violate the law less likely.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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