IRS Wins $109 Million Court Case, Defeats ‘Project Soy’ Tax Maneuver

IRS Wins $109 Million Court Case, Defeats ‘Project Soy’ Tax Maneuver​

The Internal Revenue Service won a $109 million victory in federal court this week that will help the tax agency combat aggressive corporate tax maneuvers and collect more money from other companies.

The IRS defeated telecommunications company Liberty Global, which used a maneuver it dubbed “Project Soy” to exploit a gap in the 2017 tax law and was seeking a refund.

“It appears that the only substantial purpose of the transaction was tax evasion,” wrote Judge R. Brooke Jackson of the federal district court in Colorado.

Liberty Global plans to appeal, said Bill Myers, a company spokesman.

“We believe the court has incorrectly decided the case,” he said. “We remain confident in our position.”

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Legal tax avoidance is not tax evasion. Government set the rules. Big brains at Deloitte figured out the best way to manage company assets within their rules. Where's the beef?

pmbug said:

Legal tax avoidance is not tax evasion.

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Exactly.

pmbug said:

Government set the rules.

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Problem is that the gov will change the rules (or the interpretation of the rules) to whatever benefits the government's position.

pmbug said:

Big brains at Deloitte figured out the best way to manage company assets within their rules. Where's the beef?

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The beef is because they figured out how to use the rules for their own benefit.
Edited to add: the court did not say that what they did was illegal, but rather that the only purpose for their action was to reduce the amount of taxes owed.

Our elites in gov don't like that. You are expected to not seek ways to defeat the gov's getting what it sees as it's cut.

Only government is allowed to do that. Ie: defeat it's Constitutional limitations on power.