U.S. Supreme Court rejects Dow over $1 billion tax deduction claim

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Source: reuters.com 09.01.2017

On January 9th 2017 the U.S. Supreme Court declined to hear Dow Chemical Co’s bid to revive its claim to more than $1 billion in tax deductions based on partnerships the company entered into, that lower courts said were created primarily to avoid tax liability and had no legitimate business purpose.

The justices left in place two rulings by the New Orleans-based 5th U.S. Circuit Court of Appeals in favor of the U.S. government over the two partnerships that ran from 1993 to 2003.

The lower courts agreed with the Internal Revenue Service that Dow did not deserve the tax benefits, and also imposed a 20 percent penalty for negligence and substantial understatement of taxes.

Source articles here and here

 

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