A.I.G. Sues U.S. for Return of $306 Million in Tax Payments (some related to offshore tax havens)

[babylonsister]

Maybe that expression, "when you're in a hole, keep digging" applies. The cojones...


A.I.G. Sues U.S. for Return of $306 Million in Tax Payments

Katie Orlinsky for The New York Times

Demonstrators marched in New York’s financial district Thursday to protest corporate excesses.

By LYNNLEY BROWNING
Published: March 19, 2009


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.

The lawsuit, filed on Feb. 27 in Federal District Court in Manhattan, details, among other things, certain tax-related dealings of the financial products unit, the once high-flying division that has been singled out for its role in A.I.G.’s financial crisis last fall. Other deals involved A.I.G. offshore entities whose function centers on executive compensation and include C. V. Starr & Company, a closely held concern controlled by Maurice R. Greenberg, A.I.G.’s former chairman, and the Starr International Company, a privately held enterprise incorporated in Panama, and commonly known as SICO.

The lawsuit contends in part that the federal government owes A.I.G. nearly $62 million in foreign tax credits related to eight foreign entities, with names like Lumagrove, Laperouse and Foppingadreef, that were set up or controlled by financial products, often through a unit known as Pinestead Holdings.

more...

http://www.nytimes.com/2009/03/20/business/20aig.html?_r=1

[TwilightGardener]

1. So they've received two hundred billion from the Treasury just to stay afloat, and

are now using more taxpayer money to recoup their tax refund from the Treasury...hmmm. Okey dokey, then. Makes perfect sense. :crazy:

[Why Syzygy]

2. Taxpayers are paying for this.

They are forcing the taxpayers into a lawsuit against ourselves. :crazy:

Who's making money here?

[babylonsister]

3. Great point. We own the majority of the company, so we're suing

ourselves?! :crazy:

[soothsayer]

4. As a majority owner, I'm willing to spend every bit of that $200B to get back that $300M

After all, we can always just ask for momre $$$$ after we blow through these billions. Oh! And we should get big bonuses if we get that $300M back.

[Joanne98]

5. You got to be kidding me!

[polichick]

6. SHAMELESS FUCKS.

[babylonsister]

7. Agreed. I hope Barney Frank has something to say about this. nt