The deal that Citi reached with Treasury and the IRS is a potential disaster. I don’t know about you, but if I was in a position to seek a way to avoid taxation during a share transfer, I would certainly ask my tax attorneys to see if we can use this as precedence.
Forget the amount that they just gave up (primarily so that Citi could freely pay its year end bonuses out), this could cost many billions in the future.
The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.
via U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment – washingtonpost.com.
