In late 2007, as global markets teetered on the brink of a financial abyss, three Irish taxpayers entered into a series of complex transactions involving government bonds and foreign exchange derivatives.  On paper, the trades would ultimately generate capital losses of almost €36 million. In cash terms, however, the first of the three lost just over €700,000. The scale of the transactions caught the eye of the Revenue Commissioners, who sought to unravel the complex plan. Ultimately, it determined that the transactions were outside the scope of the tax code. At a follow-up hearing, the Tax Appeals Commission (TAC) agreed,…

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