Tax Court Denies BNY Mellon $199 Million of Foreign Tax Credits in STARS Tax Shelter

The Tax Court yesterday held that a structured trust advantaged repackaged securities (STARS) transaction lacked economic substance and denied $199 million of foreign tax credits claimed by BNY Mellon. Bank of New York Mellon Corp. v. Commissioner, 140 T.C. No. 2 (Feb. 11, 2013).

Bloomberg, BNY Mellon Barred From $199 Million of Foreign Tax Credit
Chicago Tribune, BNY Mellon Loses U.S. Tax Case, to Take $850 Million Profit Hit
Financial Times, US Court Bars BNYMellon Tax Credits
Wall Street Journal, IRS Wins Major Tax Shelter Case

About the Author

Paul Caron

Paul Caron was named Duane and Kelly Roberts Dean of Pepperdine University School of Law on June 1, 2017. Dean Caron joined the Pepperdine faculty in 2013 after serving as the Dorothy and Leonard Straus Distinguished Visiting Professor of Law in the spring semesters of 2010 through 2013. He served as Associate Dean for Research and Faculty Development at Pepperdine in 2015-2017. Before coming to Pepperdine, he was Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law.