Delphi to Contest Pressure to File US Taxes Despite UK Tax Base

Friday, 08 Aug 2014 11:07 AM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Auto parts supplier Delphi Automotive Plc said it would "vigorously contest" pressure by U.S. tax authorities to file taxes in the United States as a domestic company, when its tax base is in the UK.

The Internal Revenue Service told Delphi in June that it would be taxed as a U.S. company due to the sale of its assets to Delphi Holdings LLC after it emerged from bankruptcy in 2009, the company said in a regulatory filing on July 31.

Delphi said it was reincorporated in the UK as a limited liability partnership, which allows it to save tax. The company said it had filed U.S. federal partnership tax returns between 2009 and 2011.

"We will continue to prepare and file our financial statements on the basis that neither Delphi Automotive LLP nor Delphi Automotive Plc is a domestic corporation for U.S. federal income tax purposes," the company said in the filing.

Delphi, which operates out of Detroit, is one among several American companies locked in a battle with the IRS over the use of offshore tax shelters.

The IRS contends that U.S.-based companies operating globally are manipulating tax laws.

Under the U.S. tax code, domestic companies must pay tax on total global income, including income generated in other countries. The workaround for companies is to incorporate in those countries.

Delphi has also been in the news in recent months because it supplied to General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) the defective ignition switches that were linked to at least 13 deaths.

Delphi's shares closed at $67.31 on Thursday on the New York Stock Exchange.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Yellen’s Patience Echoes Greenspan 2004 Run-Up to Rate Liftoff

Saturday, 20 Dec 2014 11:40 AM

Federal Reserve Chair Janet Yellen is taking a page from predecessor Alan Greenspan's 2004 playbook, a step that appears . . .

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Stocks Rise in Best Week Since October as Energy Industry Gains

Friday, 19 Dec 2014 16:56 PM

Oil and gas companies led the stock market up Friday, helping the Standard Poor's 500 index notch its second-best week . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved