Sham transaction

{
  "id": "MLC-T-LAW-004515",
  "term": "Sham transaction",
  "field": "Law",
  "definition": "A transaction that appears legitimate on its face but lacks economic substance and is entered into solely to achieve an ulterior, often illicit, purpose. These arrangements are designed to deceive third parties, such as creditors or tax authorities, by creating a false impression of a genuine business activity. Courts disregard such transactions for legal purposes, treating them as if they never occurred, particularly in cases of tax evasion or fraudulent conveyances.",
  "url": "https://mlchart.com/terminology/law/sham-transaction/"
}