The Justice Department's Tax Division hailed its victory in what it called an "important tax shelter case" that was decided in a Texas district court.
The case involved tax benefits of more than $150 million claimed by a Houston company, Enbridge Energy. The Justice Department said Enbridge attempted to inflate the tax deduction by concealing its direct purchase of stock in the Bishop Group Ltd., a pipeline business in Kansas City, Mo. The court held that an intermediate corporation known as the K-Pipe Merger Corp. that purportedly made the stock purchase was "a mere conduit" that was involved solely to increase Enbridge's tax deductions.
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