Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Barclays PLC    BARC   GB0031348658

Delayed Quote. Delayed  - 08/26 05:35:22 pm
166 GBp   +1.00%
05:45p DEVON ENERGY : to Present at Barclays CEO Energy-Power Conference
05:24p BARCLAYS : | Barclays publishes complaints data for H1 2016
02:56pDJU.S. Corporate Profits Climbed as GDP Ticks Down to 1.1%
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

BNY Mellon, IRS spar over $900 million tax benefit

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/18/2012 | 12:09am CEST

Bank of New York Mellon Corp (>> The Bank of New York Mellon Corporation) faced off against the U.S. government on Thursday in closing arguments over a $900 million tax benefit that the Internal Revenue Service called "tax abuse."

Bank of New York Mellon Corp (>> The Bank of New York Mellon Corporation) faced off against the U.S. government on Thursday in closing arguments over a $900 million tax benefit that the Internal Revenue Service called "tax abuse."

The case is the first to go to trial since the IRS accused some banks of generating artificial foreign tax credits through loans with London-based Barclays Plc (>> Barclays PLC).

The tax benefit stems from a $1.5 billion loan to BNY Mellon from Barclays Plc (>> Barclays PLC), which also helped several other U.S. banks generate billions in foreign tax credits. Barclays has not been accused of any wrongdoing.

Bank of New York's financing agreement "is just tax abuse tacked onto a pricey loan," Jill Frisch, attorney for the IRS, told U.S. Tax Court Judge Diane Kroupa.

The banks in question used foreign tax credits, which are given to U.S. companies to prevent them from being double-taxed by two countries for the same income. The banks call it a legal funding strategy; the government calls them sham tax shelters.

"No business willingly subjects its profits to double taxation on the same income," Bernard J. Williams, an attorney for Bank of New York, argued.

The bank has said that it may have to change its reserve for uncertain tax events by a net amount of up to $850 million depending on the outcome of the case, according to regulatory filings.

Each of the banks that got loans from Barclays say it advanced their core business. The banks paid below-market interest rates on the money, which was then subject to a series of complicated transactions.

Beside BNY Mellon, other U.S. banks that have borrowed from Barclays over the past decade include BB&T Corp (>> BB&T Corporation), and Wells Fargo & Co (>> Wells Fargo & Company).

A decision in the BNY Mellon case is not expected for several months.

(Additional reporting by Tim McLaughlin; Editing by Kevin Drawbaugh and Tim Dobbyn)

By Kim Dixon

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BARCLAYS PLC
05:45p DEVON ENERGY : to Present at Barclays CEO Energy-Power Conference
05:24p BARCLAYS : | Barclays publishes complaints data for H1 2016
02:56pDJU.S. Corporate Profits Climbed as GDP Ticks Down to 1.1%
12:54p BARCLAYS : Form 8 (DD) - Anheuser
12:44p BARCLAYS : Form 8.5 (EPT/NON-RI) - PREMIER FARNELL PLC
12:37p EQUITY : Banking stocks continue sell-off as rate cap weighs
12:29p BARCLAYS : Form 8.5 (EPT/NON-RI) - ARM HOLDINGS PLC - BCSL
12:29p BARCLAYS : Form 8.5 (EPT/NON-RI) - ANHEUSER-BUSCH INBEV SA/NV - BCSL
12:29p BARCLAYS : Form 8.5 (EPT/NON-RI) - ANHEUSER-BUSCH INBEV SA/NV - BCI
12:29p BARCLAYS : Form 8.5 (EPT/NON-RI) - ARM HOLDINGS PLC
More news
Sector news : Banks - NEC
06:55pDJTesla Raises Price of Autopilot Option by $500
02:56pDJU.S. Corporate Profits Climbed as GDP Ticks Down to 1.1%
11:17aDJAGRICULTURAL BANK OF CHINA : First-Half Net Profit Up 0.8% to CNY105.15 Billion
10:25aDJStocks Slip After Yellen's Remarks
08:48aDJFinance Watch -- WSJ
More sector news : Banks - NEC
News from SeekingAlpha
07:40a Barclays nears three sales
08/25 Amazon v. Wal-Mart In Brewing Takeover Battle
08/25 Tracking Stephen Mandel's Lone Pine Capital Portfolio - Q2 2016 Update
08/19 Beware Barclays
08/18 Activists Circling Bank Of America?
Advertisement
Financials ( GBP)
Sales 2016 19 945 M
EBIT 2016 5 682 M
Net income 2016 1 378 M
Debt 2016 -
Yield 2016 1,83%
P/E ratio 2016 21,20
P/E ratio 2017 10,57
Capi. / Sales 2016 1,39x
Capi. / Sales 2017 1,31x
Capitalization 27 800 M
More Financials
Chart BARCLAYS PLC
Duration : Period :
Barclays PLC Technical Analysis Chart | BARC | GB0031348658 | 4-Traders
Full-screen chart
Technical analysis trends BARCLAYS PLC
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 24
Average target price 1,84  GBP
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
James Edward Staley Chief Executive Officer & Director
John McFarlane Non-Executive Chairman
Paul H. Compton Group Chief Operating Officer
Tushar Morzaria Group Finance Director & Executive Director
Reuben Jeffery Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BARCLAYS PLC-26.11%37 239
WELLS FARGO & CO-11.00%245 365
JPMORGAN CHASE & CO.0.06%238 210
INDUSTRIAL AND COML BA..-1.31%237 823
CHINA CONSTRUCTION BAN..-7.96%185 205
BANK OF AMERICA CORP-7.72%157 154
More Results