The fact that BP (NYSE:BP) oil says their plan is to claim $9.9 billion in tax credits is infuriating many. The BP oil spill may end up falling on tax payers shoulders after all ! Analysts are saying this was most likely part of the company's plan all along, and the almost $10 billion will keep the cash flowing for BP.
The credit is being based on the $32.3 billion the company reported for costs relating to the oil spill. Despite the fact that President Obama assured and insisted to the public that BP would take full financial responsibility for the entire oil cleanup, as well as effected businesses and wildlife. This will cut down their spill costs by a third.
Tony Hayward said, "We have followed the IRS regulations as they're currently written." There are tax code provisions that do allow companies to claim losses through tax refunds. BP has yet to be fined for the worst oil spill in U.S. history, so this is being based on their losses not penalties.
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Business taxation 101. Tax only payable on profit. No profit = no tax. Loss = tax credit.
ReplyDeleteDeborah, you are a communist. An ignorant one at that.
ReplyDeleteD'uh. You don't pay taxes on losses. Damn, why does Google keep showing these post on Google Finance?
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