Cigarette Importer Sees $300M Deduction Go Up In Smoke
There were a lot of little bits of advice that I received early in my career that I thought it best not to take. One of them was recommending to clients that they put any disbursements of dubious deductibility into purchases since nobody ever looks there. Somehow I doubt that that was the reasoning behind Vibo deducting $295,549,083 of MSA obligations, both present, and past, as part of its cost of goods sold (COGS) for 2004.
Duke Energy’s Billion Dollar Distribution May Be At Root Of Tax Court’s Crescent Holding Decision
Even though I would be hanging my head in shame, if I had been involved in a mess like that, it is actually not all that surprising. Particularly in the partnership area, there is a lack of communication and understanding among the principals, the planners who devise the schemes, the attorneys who draft the agreements, and the preparers of the returns. Mr. Fields’ role as a partner was probably critical to the larger scheme, but apparently, nobody explained it to him.
Follow Me
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.