General Electric (GE) Strikes Back at NYT Over Tax Article
Tweet
Share
E-mail
Get Alerts GE Hot Sheet
Join SI Premium – FREE
General Electric (NYSE: GE) responded Monday to a story from the New York Times last week sensationalizing the company paying no taxes last year, while receiving a a $3.2 billion tax benefit. Click here to see our write up on the story.
"GE pays what it owes under the law and is scrupulous about its compliance with tax obligations in all jurisdictions. We are committed to acting with integrity in relation to our tax obligations. At the same time, we have a responsibility to our shareholders to reduce our tax costs as the law allows," the company said.
GE said its tax rate will be higher in 2011, as its GE Capital unit continues to recover and higher taxes are expected on the sale of NBCU.
The company clarified it "paid almost $2.7 billion in cash taxes in 2010 on a consolidated basis (almost 19% of pretax income from continuing operations)."
GE struck back at the NYT, saying the newspaper erroneously suggests GE makes use of tax “loopholes” or “innovative accounting."
"Our accounting and tax positions fully comply with all applicable rules and regulations and are based on sound public policy. Virtually all major industrialized countries tax only domestic, not foreign business income."
GE shares are trading 0.2% lower this afternoon.
"GE pays what it owes under the law and is scrupulous about its compliance with tax obligations in all jurisdictions. We are committed to acting with integrity in relation to our tax obligations. At the same time, we have a responsibility to our shareholders to reduce our tax costs as the law allows," the company said.
GE said its tax rate will be higher in 2011, as its GE Capital unit continues to recover and higher taxes are expected on the sale of NBCU.
The company clarified it "paid almost $2.7 billion in cash taxes in 2010 on a consolidated basis (almost 19% of pretax income from continuing operations)."
GE struck back at the NYT, saying the newspaper erroneously suggests GE makes use of tax “loopholes” or “innovative accounting."
"Our accounting and tax positions fully comply with all applicable rules and regulations and are based on sound public policy. Virtually all major industrialized countries tax only domestic, not foreign business income."
GE shares are trading 0.2% lower this afternoon.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- GE Aerospace (GE) call put ratio 1 calls to 1.2 puts into quarter results
- US big banks Q2 earnings preview: strong prints on tap amid market, economic strength
- Johnson & Johnson Q2 earnings preview: analysts eye product launch progress
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
