sham transaction

sham transaction. An agreement or exchange that has no independent economic benefit or business purpose and is entered into solely to create a tax advantage (such as a deduction for a business loss). • The Internal Revenue Service is entitled to ignore the purported tax benefits of a sham transaction. [Cases: Internal Revenue 3071. C.J.S. Internal Revenue §§ 13–14.]

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词条贡献者

译员圣强，国际仲裁与争端解决专业，专注翻译各种与跨境争议有关的法律文件。