27 February 2013 23:54 [Source: ICIS news]
HOUSTON (ICIS)--Two tax shelter transactions entered into by Dow Chemical to create about $1bn (€770m) in tax deductions have been rejected by a ?xml:namespace>
Chief Judge Brian Jackson of the US District Court for the Middle District of Louisiana also imposed penalties, details of which were not available late Wednesday.
In the court’s opinion,
“Dow viewed its tax department as a profit centre” and had at its disposal “numerous lawyers and tax professionals”,
In a press statement, Dow said that the company sued the federal government for the return of taxes paid from 1993-2003.
"Dow paid all taxes at issue plus interest, but requested the US District Court to agree that the taxes were wrongly assessed by the IRS," the company said.
Dow said it was disappointed with the Baton Rouge-court’s decision.
"We believe the opinion is not supported by the facts and applicable law,” the company said. “Dow is exploring all of its options, including appeal."
Assistant Attorney General Kathryn Keneally of the DOJ’s Tax Division hailed the court’s decision.
“It is offensive to all taxpayers who pay their fair share when our largest corporations believe that they can claim hundreds of millions of dollars in tax deductions that are manufactured by abusive tax schemes,” Keneally said.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections