Dow Challenges $1B Tax Shelter Ruling In 5th Circ.

Law360, New York (November 21, 2013, 7:24 PM EST) -- Some Dow Chemical Co. entities urged the Fifth Circuit on Wednesday to overturn a district court ruling that the company entered two investment partnerships to create about $1 billion in phony tax deductions, saying tax law doesn't ban transactions that have tax and nontax benefits.

In February, U.S. District Judge Brian A. Jackson sided with the Internal Revenue Service in finding that the transactions and partnerships should be disregarded for tax purposes and hit Dow with a walloping 20 percent penalty. But on appeal before the...
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