While looking for something else, I ran across this. Hanna is on the forum (occasionally), and did a really good job in the magic discussion (I can't speak to the Tax Law part . . .)
From Gregory to Enron: The Too Perfect Theory and Tax Law
Christopher H Hanna. Virginia Tax Review. Charlottesville: Spring 2005.Vol. 24, Iss. 4; pg. 737
ABSTRACT: Although financial writers have been using magic terms in describing tax law (and accounting reporting), the question arises of whether such terms and theories really have a place in the law. It is shown here that there is a connection between magic and tax law. A theory in magic known as the Too Perfect Theory, which has been present in magic circles for many years and has recently had a resurgence in popularity, is applicable to tax law. The Too Perfect Theory has been interpreted to mean that a magic trick may be too perfect, in that not only does it not fool the audience, but the effect itself may lead the audience to discover how the trick is performed. What is interesting about the Too Perfect Theory is that it seems to be applicable to the law, particularly the practice of transactional law, such as tax law. It is shown here that a transaction may have results that are too perfect under the tax law, and, as a result, the transaction may be subject to recharacterization by the government and the courts.