July 12, 2005

Recent US System Tax Articles

The ongoing mess that is our tax code (the third link is fascinating from a taxpayer perspective):
  • Lynnley Browning:
    In late 1999, the Keeters put $188 million into an account at Deutsche Bank. The money, used in tandem with a $500 million loan from the bank, would be used to trade derivatives and options. The Keeters say they thought that they would make an unspecified return on their investment, pay back the loan, as well as generate $188 million in tax savings that could then be legitimately used to offset other gains. But family members said that they discovered their shelter was not legal only when the I.R.S. began auditing some of their federal tax returns - prepared by KPMG, with the Blips deductions written in - for 2000 and 2001.
  • Tanina Rostain:
    From the late 1990s into the next decade, KPMG devoted significant resources to developing and mass marketing hundreds of abusive tax shelters. These products were designed to enable their purchasers - typically high wealth individuals and Fortune 500 companies - to avoid paying taxes on the huge financial gains they enjoyed during the stock market boom. 135K PDF
  • Louise Story:
    "The tax court is seen as a place that a taxpayer ought to be able to go and get a fair shake, and the secrecy here, and the outcome in these cases, does raise the question as to whether they're getting a fair shake," said Alan B. Morrison, a senior lecturer at Stanford Law School, who wrote a supporting brief for the three taxpayers in the Supreme Court case.

    The court's secrecy, "confirmed now by a major change in a decision, is a big deal, and it's not right," he said.

    One of Mr. Kanter's lawyers, Richard H. Pildes, a professor at NYU School of Law, said the case reminded him of Jarndyce and Jarndyce, the never-ending lawsuit in Charles Dickens's novel "Bleak House."
Posted by James Zellmer at July 12, 2005 7:34 AM | Subscribe to this site via RSS:
Posted to Politics | Taxes