Saturday, September 28, 2013

BB&T's $688 Million Court Loss Shows the Evil of the Tax Law

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The U.S. Court of Federal Claims ruled that BB&T cannot get a refund of some $688 million because the basis for the refund claim by BB&T was determined to be a tax shelter.

The elaborate complexity of the transaction, while arguably technically correct, was needed to cope with the byzantine tax code sections involved.

The court decided that when all is said and done, all BB&T did was to try and save on taxes. These days just trying to save some cash flow from getting lost to federal income tax is verboten.

As tax shelters go, the BB&T transactions are impressive in size, scope and intricacy. The amount of sheer intellectual effort that went into its creation, implementation and defense is almost unimaginable.

More @ Money News

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