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WTF?! Chase CFO brags on conference call that $7B of its $13B fine will be tax deductible.

during a conference call on Tuesday, Marianne Lake, JPMorgan’s chief financial officer, emphasized that $7 billion of the settlement was tax-deductible. A person briefed on the case said the decision whether to credit the payments ultimately rested with the I.R.S., though public interest groups remained concerned.http://graphics8.nytimes.com/images/2013/11/20/business/dbpix-chase2/dbpix-chase2-tmagArticle.jpg

In contrast, lawyers for big banks have questioned whether the Justice Department is crossing a line. The fines, they complain, are arbitrary figures meant as a kind of catharsis for the public.



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Comment by truth on November 20, 2013 at 9:17pm

 (CNNMoney) The majority of the $13 billion settlement JPMorgan struck with the government Tuesday is likely to be tax deductible<p>Here's why: Many of the costs associated with corporate legal cases are treated as deductible under the tax code, in much the same way that<strong> </strong>a company's wages or equipment expenses are.</p>
<p>That means JPMorgan will be able to reduce its tax bill because of many of the settlement payments that it must make.</p>
<p>"From 1913, our tax laws have permitted companies to deduct their 'ordinary and necessary' expenses, which include compensation and restitution payments," said Steve Rosenthal, a lawyer specializing in financial institution taxation and a visiting fellow at the <a href="http://www.taxpolicycenter.org/" target="_blank">Tax Policy Center</a>.</p>
<p>But not all types of settlement payments are deductible. For instance, companies are prohibited from deducting fines and penalties payable to the federal government.</p>
<p>"In 1969, Congress decided that allowing companies to deduct fines and similar penalties frustrated public policy, so it disallowed deductions for these payments -- and, separately, disallowed deductions for antitrust damages, illegal bribes, and kickbacks," Rosenthal said.</p>http://money.cnn.com/2013/11/19/news/companies/jpmorgan-doj-deal/

Comment by truth on November 20, 2013 at 2:45pm


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