CORRECTED: 11th Circ. Remands Foundation's $100M Midco Tax Battle

Law360, New York (November 14, 2013, 3:44 PM EST) -- A prominent Connecticut-based charity could not escape $100 million in tax liability for its use of a Midco transaction, the Eleventh Circuit ruled Thursday, tossing Diebold Foundation, Inc.'s case back to the U.S. Tax Court to determine whether the company owes back taxes.

For the first time, the Eleventh Circuit joined the First and Fourth circuits in deciding the proper analysis for judging the validity of a Midco transaction — a tax-free deal structure that allows a C-corporation to sell its stock to an intermediary, in...
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