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FINDLAW LEGAL DICTIONARY

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Sham Transaction

sham transaction n

: a transaction that is made to mislead or deceive others
: a transaction having no economic effect that is made to create tax benefits NOTE: The Internal Revenue Service may deny tax benefits for sham transactions.



Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.