Is The Department Of Justice Going To Let BP Save $5 Billion In Taxes?

[MerryBlooms]

[URL=.html][IMG][/IMG][/URL]

When the Justice Department announced a $20 billion settlement with BP over the Gulf of Mexico oil spill, it called the amount “historic.” It did not mention, though, that BP would likely be able to write off a large portion of the settlement — saving $5 billion in taxes.

On Wednesday, a group of 53 House Representatives sent a letter to Attorney General Loretta Lynch, urging her to make sure the deal’s final language closes this loophole. The agreement is currently in a public comment period.

“The ‘gross negligence’ that led to perhaps the worst environmental disaster in US history should not be an opportunity to game the tax code,” the legislators, led by Rep. Raul Grijalva (AZ), write. “Challenging fiscal choices may lie ahead, and every dollar we lose in revenue is a dollar cut from much needed programs, raised from another source, or added to the national debt.”

According to the letter, only the $5.5 billion in fines levied under the Clean Water Act are not able to be deducted. The remaining $15.3 billion could be, which the group estimates would save BP $5 billion on its tax bill.

http://thinkprogress.org/climate/2015/11/18/3723745/bp-tax-savings-oil-fine/

Close the loophole!!!

[hifiguy]

1. Is this a cute cartoon pony?

[MerryBlooms]

2. I'm not sure what your post has to do with my OP, but 'yes', cute... here, you need this--

[URL=.html][IMG][/IMG][/URL]

http://www.amazon.com/My-Little-Pony-10-Light-Fluttershy/dp/B00IPAVO52/ref=pd_bxgy_201_2?ie=UTF8&refRID=0Z7Z4K0FFMYVQS7BGRS3

[hifiguy]

3. I just meant that the answer is obviously "yes."

[MerryBlooms]

4. Ah, okay, gotcha. :P Did you buy some lights- there are a few options. Very cute.

[hifiguy]

5. I don't do xmas.

But I do have a bunch of the Funko figures, some t-shirts and all of the comics.

Eyeing the two art books: MLP: The Art of Equestria (show art) and Art Is Magic (comics art).

[MerryBlooms]

6. I'll have to Google all that, lol... but I hang novelty lights throughout the year...

I may order the Fluttershy set just because they're so cute and sunshiny, and would be good for spring or summer.

[former9thward]

7. The DOJ can't close the loophole.

It is part of the IRS code. She can't change that.

[jeff47]

8. She can require BP to not write it off as part of the settlement.

Yes, the IRS would allow the deduction, but BP is not required to take it.

[former9thward]

9. No she can't.

For BP to do that would violate the fiduciary duty a company has, by law, to shareholders to take all lawful deductions. The BP Board of Directors would be sued by shareholders for the loss.

[jeff47]

10. Not when failing to take the settlement costs much more money.

The negotiated fine is far lower than what they face at trial. Their fiduciary duty is not just "take deductions". It's also to not expose the company to far greater expenses.

[former9thward]

11. Well that is just speculation on your part.

You don't know what would happen at trial.

[jeff47]

12. So they violated their fiduciary duty by negotiating a settlement?

'Cause if a trial is so likely to result in a smaller/no fine, then they violated their fiduciary duty by negotiating a settlement.

[former9thward]

13. I have not seen the settlement nor do I have access to the facts behind it.

Nor do you.