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LSDefine

Simple English definitions for legal terms

Sham transaction

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A quick definition of Sham transaction:

A sham transaction is a fake or illegal deal that doesn't really happen in real life. Sometimes people make these fake deals to avoid paying taxes or trick others. But if a sham transaction is discovered, it can be cancelled by a court because it's not real.

A more thorough explanation:

A sham transaction is a type of transaction that is either illegal or fake. Transactions that are fake or illusory, meaning they exist only on paper and have no real-world consequences, can be voided by a court of law. This is especially true if the transaction is used as a way to deceive or avoid taxes.

  • A company creates a fake invoice for services that were never provided in order to claim a tax deduction.
  • An individual transfers ownership of a property to a family member for a nominal fee in order to avoid paying taxes on the sale of the property.
  • A business owner creates a shell company to funnel money through in order to avoid paying taxes on the profits.

These examples illustrate how sham transactions can be used to deceive or avoid taxes. In each case, the transaction is not a legitimate business transaction, but rather a way to manipulate the system for personal gain. Courts can void these transactions and impose penalties on those who engage in them.

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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