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SpongeBob SquarePants In A Tax Case!

SpongeBob SquarePants In A Tax Case!

The Greenbergers also tried an estoppel argument maintaining that since the Department of Justice had notified them that they might be victims of a crime, that the government could not now argue that they were not theft victims.  That just didn’t work because Ohio law requires a privity between the thief and the victim.

There is probably not much of a tax planning point here since nobody plans to get defrauded.  The fraud story is a really good one, though.  I can’t rate it that highly since the basis was simply inflating sales, but I do think they should get some extra credit for including an animated character.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.