Judge Invalidates Tax Shelter

Law360, New York (February 2, 2007, 12:00 AM EST) -- In a move that could influence the ongoing criminal investigation into improper tax shelters, a district court judge has determined that a popular tax shelter is not legitimate.

Judge T. John Ward of the U.S. District Court for the Eastern District of Texas has ruled that the Blips tax shelter, widely used by Deutsche Bank and KPMG, was based on fraudulent bank loans.

Ward ruled that the tax shelter was entirely fake, having been based on false loans and lacking any ostensible business purpose. The ruling...
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