In this issue:
- Swiss Bank Settlement Dilemma
- District Court Upholds STARS Transaction Ruling Payment Is Included in Pre-Tax Profit
- Court of Federal Claims Holds for Government in BB&T STARS Transaction
- Tax Court Allows Interest Deduction for Loan Connected with STARS Transaction
- Supreme Court Hears Oral Arguments in United States v. Woods
- Swiss Bank Frey Ceases
- Excerpt from: District Court Upholds STARS Transaction Ruling Payment Is Included in Pre-Tax Profit:
On October 17, 2013, Judge George A. O’Toole of the US District Court of Massachusetts issued an opinion holding that a structured trust advantaged repackaged securities (“STARS”) transaction entered into by Sovereign Bancorp, Inc. (now known as Santander Holdings USA, Inc.) (“Sovereign”) was not a sham, but rather had objective economic substance as a result of a payment Sovereign received from the counterparty which was included in Sovereign’s pre-tax profit. 3 The opinion was consistent with the remarks of the district court judge in a September 25, 2013 pretrial conference when ruling that Sovereign’s motion for partial summary judgment would be granted. The ruling marks a significant taxpayer victory in the so-called “foreign tax credit generator” cases.
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Topics: Foreign Banks, Income Taxes, Offshore Banks, OVDP, SCOTUS, Tax Evasion, United States v Woods
Published In: Civil Procedure Updates, Criminal Law Updates, International Trade Updates, Securities Updates, Tax Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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