A.I.G. Suing the Government for Return of $306 Million in Tax Payments
Posted Mar 24 2009 3:57pm
How far does all of this go? Now the company wants 306 million returned for tax payments? I find all this very strange indeed and due to the fact that fraud has reigned with their “reserves” issues that date back a few years, how accurate are the returns I wonder? Has one heard the old saying “you never look a gift horse in the mouth”? BD
Corruption goes back here as reported to 2005. Perhaps AIG might have a better reputation in “Second Life” (grin). BD
While the American International Group comes under fire from Congress over executive bonuses, it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens.
A.I.G. sued the government last month in a bid to force it to return the payments, which stemmed in large part from its use of aggressive tax deals, some involving entities controlled by the company’s financial products unit in the Cayman Islands, Ireland, the Dutch Antilles and other offshore havens.
A.I.G. is effectively suing its majority owner, the government, which has an 80 percent stake and has poured nearly $200 billion into the insurer in a bid to avert its collapse and avoid troubling the global financial markets. The company is in effect asking for even more money, in the form of tax refunds. The suit also suggests that A.I.G. is spending taxpayer money to pursue its case, something it is legally entitled to do. Its initial claim was denied by the Internal Revenue Service last year.
A.I.G.’s lawyers in the case, at Sutherland Asbill & Brennan, referred calls to the company. Asked about the lawsuit, Mark Herr, an A.I.G. spokesman, said Thursday that “A.I.G. is taking this action to ensure that it is not required to pay more than its fair share of taxes.”