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

Friday, 08 Aug 2014 11:07 AM

 

Share:
  Comment  |
   Contact Us  |
  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.

Share:
  Comment  |
   Contact Us  |
  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.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Fed's Bullard: It's 'Natural' to Drop Rate Pledge Next Month

Tuesday, 23 Sep 2014 14:42 PM

Federal Reserve Bank of St. Louis President James Bullard said the central bank may need to drop its pledge next month t . . .

El-Erian: I Should Have Done 'Things Differently' in My Pimco Departure

Tuesday, 23 Sep 2014 14:31 PM

Mohamed El-Erian expected to go quietly. The one-time heir apparent to Pimco investment chief Bill Gross had no idea lea . . .

WTO Cuts Growth Forecast to 3.1% on Global Ebola Threat

Tuesday, 23 Sep 2014 11:39 AM

Global goods trade will grow less than hoped this year and next, and factors including regional conflicts and the Ebola  . . .

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