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GE Sues IRS For $658 Million Tax Refund

Tyler Durden's picture




 

As goes GE so goes...? Not satisfied with the increasing offshoring of taxation (amid the Double Irish with a Dutch Sandwich and so on), US corporations are increasingly digging elsewhere in the vain hope of finding "revenue" to keep the shareholder dream alive. While GE is not alone in this, its latest move perfectly summarizes the farce that US accounting (and tax) regulations have become (and Immelt's angelic position advising Obama on jobs and the economy). As Reuters reports, GE is suing the Internal Revenue Service for a $658 million tax refund related to a tax loss the company claimed as it exited the reinsurance market more than a decade ago.

 

Via Reuters,

In a civil complaint filed on Friday in U.S. District Court for Connecticut, GE said the IRS wrongly disallowed a $2.2 billion loss it claimed from the 2003 sale of a reinsurance subsidiary.

 

The complaint said GE, a large conglomerate that sells jet engines and financial products, is owed a $439.3 million federal income tax refund plus $219 million in interest. A court date has yet to be set.

 

"The dispute involves a good-faith difference of opinion over the tax consequences of a restructuring done more than a decade ago," GE spokesman Seth Martin said in a statement. "While we have paid the taxes in question, we believe it is in all parties' interests to resolve this through a court decision," he said.

 

GE is arguing that due to the 2003 sale of a struggling reinsurance business, ERC Life Reinsurance Corp, it could carry back tax losses into years it had taxable gains, according to GE's court filing.

 

The IRS had disagreed with GE's claims for losses and reversed a tentative tax refund to the company in 2004, the court filing said.

 

...

 

GE, based in Fairfield, Connecticut, has faced public scrutiny from watchdog groups for its low effective tax rate.

 

Chief Executive Jeff Immelt, a top adviser to President Barack Obama on jobs and the economy, has said repeatedly the United States ought to reform its corporate tax code.

We are sure Immelt has lots more to teach the President...

 

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Wed, 02/19/2014 - 20:37 | 4455030 johngaltfla
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Immelt, may you suffer from anal cancer one day. Tomorrow would be a good day to start, you douche scumbag.

Wed, 02/19/2014 - 20:38 | 4455036 TruthInSunshine
TruthInSunshine's picture

658 million USD is chicken scratch, GE!

You should've invested in WhatsApp, PIKERS!!!

Wed, 02/19/2014 - 20:46 | 4455062 0b1knob
0b1knob's picture

I was under the impression the GE had not paid ANY taxes for decades.  Refund?

Wed, 02/19/2014 - 20:47 | 4455072 johngaltfla
johngaltfla's picture

Re-read it. It's a refund for "tax credits" they believe they were due; on money their failed ABS company got form a bailout by taxpayers!!!!!!!

Wed, 02/19/2014 - 20:53 | 4455089 TruthInSunshine
TruthInSunshine's picture

Immelt was a huge and very vocal supporter of Candidate Obama in 2008.

And the he "went to work" for President Obama.

Free markets, capitalism, and the entrepreneurial spirit USSA!

Wed, 02/19/2014 - 20:57 | 4455103 johngaltfla
johngaltfla's picture

And oh does GE have all those juicy DoE and DHS contracts not counting their DoD goodies they have had for years. It as their home financing and appliance financing arms that got them the freebies on the backs of the taxpayers when shockingly enough broke people quit making payments.

Wed, 02/19/2014 - 21:13 | 4455168 flacon
flacon's picture

How much is the average DAILY Quantative Easing? BILLION$!!!

Wed, 02/19/2014 - 21:20 | 4455207 AlaricBalth
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GE made $88 billion over the last 11 years but used corporate tax loopholes and offshore tax havens (where it has stashed $108 billion) to reduce its federal income tax rate to just 2.4%. GE received a tax subsidy of nearly $29 billion over the 11 years.

In four of those years, GE reported more than $22 billion in U.S. profits, yet paid no federal income taxes and received $4.8 billion in tax rebates.
While dodging paying its fair share of federal income taxes, GE pocketed $21.8 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.

GE’s CEO plays a leading role in coalitions that want to cut corporate taxes, cut Social Security, and raise the retirement age from 67 to 70. His $59 million GE retirement account is enough to provide him with a $336,007 retirement check each month.

GE has eliminated more than 15,000 American jobs since 2004, while adding 30,000 jobs overseas during that time.

http://www.americansfortaxfairness.org/files/Corporate-Tax-Dodgers-Repor...

Wed, 02/19/2014 - 21:31 | 4455249 TheFourthStooge-ing
TheFourthStooge-ing's picture

Easy money for GE, because they can't lose. Their legal department wrote the tax code.

Thu, 02/20/2014 - 02:00 | 4456220 Four chan
Four chan's picture

the big picture of what ge has done in its history = LOL!!!!

someone needs to fuku this company because it has always been tbtf.

Thu, 02/20/2014 - 09:21 | 4456767 onewayticket2
onewayticket2's picture

it's all payolla (no taxes, refunds, etc) for the glidepath they and their NBC division gave to liberals over the last years.  they were front and center getting this idiocy elected and now it's time for a little more payback.

 

 

Thu, 02/20/2014 - 00:10 | 4455914 Nobody For President
Nobody For President's picture

God damnit Alaric, my blood pressure is ALREADY high enough!

Wed, 02/19/2014 - 21:07 | 4455138 KickIce
KickIce's picture

The parasites are running out of hosts so the're now forced to feed off one another.

Wed, 02/19/2014 - 21:59 | 4455364 TheFourthStooge-ing
TheFourthStooge-ing's picture

Hey, c'mon, be fair. GE pays its taxes. Sure, from 2008 to 2010 their tax rate was negative 45.3 percent, but over that same time period they paid taxes of negative 4.7 billion dollars, which is no small amount, and certainly non-zero.

http://www.sourcewatch.org/index.php/General_Electric

http://www.nytimes.com/2011/03/25/business/economy/25tax.html

 

Wed, 02/19/2014 - 22:18 | 4455439 LMAOLORI
LMAOLORI's picture

 

 

Damn Stooge it's even worst than I thought - now you have me pulling out my own hair!

Thu, 02/20/2014 - 19:40 | 4459799 libsareajoke
libsareajoke's picture

I worked for this company years ago.  There was a time we made THE BEST PRODUCTS.  Now, from what I hear, the company is more concerned with diversity and hiring H1B's.  It IS an organ of the government.

Wed, 02/19/2014 - 20:50 | 4455046 TeamDepends
TeamDepends's picture

Cannibalism, always interesting.

Wed, 02/19/2014 - 20:41 | 4455048 lakecity55
lakecity55's picture

Wait, I am confused. I thought GE was part of the government now!

Wed, 02/19/2014 - 20:59 | 4455097 nmewn
nmewn's picture

I'm thinkin, GE should stop the manufacture & distribution of those little curly mercury filled lightbulbs from China. The fringe eco-populations of the major cities would go into an epileptic fit, rioting in the streets and pressuring the IRS, it would have to accede to GE's demands.

By Executive Order ;-)

Wed, 02/19/2014 - 21:03 | 4455115 LMAOLORI
LMAOLORI's picture

 

 

They might just as well be part of the government we bailed out GE Capitol and gave the company $$$$$ for green projects

 

The Unholy Marriage Of GE And President Obama At The Altar Of Industrial Policy
Wed, 02/19/2014 - 21:57 | 4455354 PubliusTacitus
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It is: Government Electric

Wed, 02/19/2014 - 20:41 | 4455049 happel
happel's picture

I wish I could say I am shocked.

Wed, 02/19/2014 - 20:47 | 4455069 asteroids
asteroids's picture

GE got billions of TARP money. They were is rough shape. I guess those days of gratitude are long gone. I bet all the primary dealers that took TARP money now feel the same. Hmmmm.

Wed, 02/19/2014 - 20:49 | 4455077 johngaltfla
johngaltfla's picture

If you remember Tyler's posts, their various divisions also got special low to zero interest overnight loans from the Fed. GE is without a doubt the biggest steaming pile of crap I've ever seen.

Wed, 02/19/2014 - 20:50 | 4455081 Berspankme
Berspankme's picture

This fucking Jeffrey Immelt is a cunt, a fuckfaced little prick. Fuck You GE

Wed, 02/19/2014 - 20:53 | 4455094 oleander garch
oleander garch's picture

There is absolutely nothing wrong with these patriotic corporate citizens not suffering what afflicts the common man.  Http://www.youtube.com/watch?v/kYuYsblk8tg

Wed, 02/19/2014 - 21:00 | 4455108 Kirk2NCC1701
Kirk2NCC1701's picture

Let's ALL offshore our assets and taxation.  Something that guys like Simon Black have been saying for years, but have been ridiculed by the USSA Stockholm Syndrome Serfs and by Gov trolls.

Mine is partial and WIP.  All focking legal too. [sticks tongue out]

Wed, 02/19/2014 - 20:59 | 4455112 The Gooch
The Gooch's picture

We bring great things to taxpayers.

Thrice.

Wed, 02/19/2014 - 21:00 | 4455116 Pseudonymous
Pseudonymous's picture

I would applaud GE's non-payment of taxes if it wasn't for all the other ways in which GE is fascist.

Wed, 02/19/2014 - 21:13 | 4455167 LMAOLORI
LMAOLORI's picture

 

 

+1 - That in a nutshell is the problem FASCISM. The same thing is happening with obummercare the latest surprise is with the dictators delays it is being reported there will be extended bail outs for the insurers who if you recall made the deal with the devil in the backroom.

Wed, 02/19/2014 - 21:00 | 4455118 Last of the Mid...
Last of the Middle Class's picture

I got an idea how about you pay back the Billions with a B the government gave you. What an f'ing thief. His lawyers are paid for by US Government dollars given to the company so he sues the IRS. Someday, Somewhere, Somehow some people are going to have to pay for this nonsense.

Wed, 02/19/2014 - 21:19 | 4455201 Spungo
Spungo's picture

"Somehow some people are going to have to pay for this nonsense."

Don't worry, we'll borrow the funds from social security.

Wed, 02/19/2014 - 21:30 | 4455243 Seal
Seal's picture

Eeehhhh, Eric will just sit down privately with Jeff and work stuff out - contributions to the O library, campaign stuff, the usual. 

Wed, 02/19/2014 - 21:35 | 4455259 Atomizer
Atomizer's picture

I wish you no harm. The people you fucked over will hunt you down till death. Thank God I never have to live in fear for rest of my life.. You have to be fucking kidding with me. Planted news story with GE?

 

Let’s just begin talking about Japan.  Low water reactor demands. Or high water expectations.

 

Listen clusterfucks. Too many know the back dealings of pretending to be rich while your ranching the FICO score and undertaking new debt to repackage to some moran to repay the casino debt obligation.

 

I wish you no harm. The people you fucked over society will be hunt you down till death. Thank God I never have to live in fear for rest of my life..

 

Wed, 02/19/2014 - 21:51 | 4455321 Fred Hayek
Fred Hayek's picture

(to the melody of their commercial theme but with updated lyrics)
G-EEEEEEEEEEEEE
Corruption brought to life!

Wed, 02/19/2014 - 21:58 | 4455362 LMAOLORI
LMAOLORI's picture

 

 

Thanks a lot Fred now I have an earworm :)

Wed, 02/19/2014 - 22:10 | 4455406 highwaytoserfdom
highwaytoserfdom's picture

This is actually good news for taxpayers...   Gary Wendt was forced to resign from GE in 91 due to a divorce.  Ironically Jack Welsh receive a divorce a year later.   Welsh financed power plants with GE Capital and profited greatly on locomotive business in shipping the "climate criminals" coal from Kentucky and West Virgina.   In the mean time the coal power producers were fined by the EPA climate criminals in the Northeast Blue states for acid rain.   The fines were to the tune of 1.7 b.... MIND YOU THIS WENT TO GENERAL FUNDS  not one cent was spent on scrubbing/ coal washing or did anything to help the environment.....    Yea you guys know the GE Enron connection and in the mean time CNBS was sprouting all this propaganda on Buffet & Welsh.......   

 

Pick up Stockman's  book and  read about the commercial    paper  theft by GE....  it is gladdens my heart that GE goes back 14 years in tax court....   What is good for the goose is good for the gander so to speak 

TARP recovery will come and GE's commercial paper rollover was another  NON MAN UP on leverage....  Have no fear TARP and the bankers  pay if we put vote in prosecutors DNC/RNC/MSM/NSA/MIC  educated in these thefts on the very corporate fascist..  Ron Paul is wrong about one thing calling this soft fascism .......  it is HARD HARD PAINFUL  fascism...    11 years IRS to go back    some hope for 2008.

Wed, 02/19/2014 - 22:37 | 4455528 LMAOLORI
LMAOLORI's picture

 

What happened to the DailyBail nothing new in months?

Thu, 02/20/2014 - 03:54 | 4456398 syntaxterror
syntaxterror's picture

Ask S&P what happens when you fuck with BarackCo.

"(Reuters) - Standard & Poor's said on Tuesday the U.S. government filed a $5 billion fraud lawsuit against it in "retaliation" for its 2011 decision to strip the country of its "AAA" credit rating."

Thu, 02/20/2014 - 08:54 | 4456446 NuYawkFrankie
NuYawkFrankie's picture

re GE Sues IRS For $658 Million Tax Refund

To: Jeff Immelt, GE CEO / JOBS (for China) Czar

 This may come as something of a shock, so brace yourself: You actually have to have paid taxes before you can claim a refund.

Feel free to pass on this info. to the rest of your TBTF buddies - maybe at least they can save some legal fees. You're welcome - any time Jeffy, glad to be of assistance ;)

(PS Hey -almost forgot! Not that anyone needs the Pacific, but how's the cleanup of the GE reactor at Fukushima going? Forging ahead eh? Thought so - way to go Jeffy!)

 

Thu, 02/20/2014 - 08:38 | 4456663 Rising Sun
Rising Sun's picture

Immelt suing his brother Barry.

 

Trouble in the "house of nazi"

Thu, 02/20/2014 - 09:34 | 4456827 JailBanksters
JailBanksters's picture

I thought GE had deferred their Tax Payments until a time it suited them. Which was never, so they have probably never paid any tax and is hoping the IRS is too stupid to realize that.

 

Thu, 02/20/2014 - 09:53 | 4456913 Reader1
Reader1's picture

Haven't they stolen enough?  They paid no taxes last time I heard...

Fri, 02/21/2014 - 11:06 | 4461770 Peanut Butter E...
Peanut Butter Engineer's picture

Out of two evil, one is a direct parasite and the other is indirect. I truly hope IRS dies and Ge suffers...but it probably won't happen.

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