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"We have outside tax counsel looking into this question," Mr. Neale said.
Russell Wilkerson, a managing director at G.E. Capital, said outside tax advisers had assured the company that its unorthodox arrangement met I.R.S. regulations because it required the approval of the intermediary before any transaction was made.
A group of protesters gathered outside tax offices in Athens this morning to urge government ministers not to allow homes to be repossessed from families who can no longer meet their debts, or auctioned to pay their bills.
"We like it because there's no glitz," said Ginny Deckelman, of East Northport, N.Y., who, with her accountant husband, Charlie, bought a condo on the island 14 years ago for sneaking away during the months outside tax season.
The agency played down the significance of the guide, but several outside tax experts said yesterday that the posting showed that the I.R.S. was finally addressing two growing forms of tax cheating.
Merrill Lynch said in a statement, "These transactions were carefully reviewed at the time by prominent outside tax counsel and accountants, all of whom gave opinions that they were proper and appropriate".
Similar(47)
It is frustrating to have sat outside tax-avoiding shops for hours on freezing cold winter days, and to still be reading tax avoidance stories two years later.
One challenge is formulating the law so it does not prompt traders to move outside taxed jurisdictions.
Outside that tax shelter, middle-class savers who pay a marginal tax rate of 40% would have earned a net return of 6.6%.
Without a fully legalized workforce, employers will resort to hiring workers off the books and outside the tax system, robbing the federal and state governments of $17.3 billion in tax revenues.
Outside California, tax increases fared less well.
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