sham transaction
noun
: 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.
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“Sham transaction.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/sham%20transaction. Accessed 30 Oct. 2025.
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