Law360, New York (December 16, 2016, 9:54 PM EST) -- The First Circuit overturned an earlier $234 million victory for Santander Holdings USA Inc. after ruling on Friday that an internal securities transaction the bank had engaged in lacked economic substance and does not qualify for foreign tax credits.
A three-judge panel unanimously held that the structured trust advantaged repackaged securities, or STARS, transactions set up by Sovereign Bancorp Inc., Santander's predecessor, had only tax-avoidance features with no bona fide business purpose or real economic risks.
"The STARS Trust transaction itself does not have a reasonable prospect of creating a profit without considering the foreign tax credits, and, as a result,...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!