Sovereign Bancorp Can't Recoup $234M In Taxes, US Says

Law360, New York (December 18, 2013, 4:35 PM EST) -- The U.S. government fired back Monday at Sovereign Bancorp’s attempt to claw back $234 million in assessed taxes, asking a Massachusetts federal court to look at each step in the bank’s questionable securities transaction and deem it a tax shelter scheme.

The U.S. filed its own summary judgment motion Monday in response to Sovereign’s motion filed in late November, and the government is now asking the court to apply the substance over form principle to find the tax benefits of the bank's structured trust advantaged repackaged...
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