Justices Toss Eyeglass Magnate's $5M Tax Shelter Case

Law360, New York (January 13, 2014, 5:36 PM EST) -- The U.S. Supreme Court refused Monday to review a Sixth Circuit ruling that held a complex $5.4 million foreign currency loan was really a tax shelter scheme subject to full taxation, rejecting a petition filed by eyeglass magnate Mark Kerman.

Kerman, owner of Louisville-based Kenmark Optical Inc., filed the petition in September, seeking a ruling from the high court that custom adjustable rate debt structure, or CARDS, transactions have economic substance, making them nontaxable.

The high court rejected the petition without stating its reasons, as is...
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