Wednesday, March 19, 2014

The Department of Justice announced today that it has reached a $1.2 billion settlement with Toyota in a criminal probe of the automaker's handling of safety complaints of sudden acceleration in its cars. As part of the deferred prosecution agreement, "Toyota agrees that it will not claim, assert, or apply for a tax deduction or tax credit with regard to any federal, state, local, or foreign tax for any fine or forfeiture paid pursuant to this Agreement." (At the 35% corporate tax rate, the foregone deduction amounts to $480 million of additional taxes.) Prior TaxProf Blog coverage:

https://taxprof.typepad.com/taxprof_blog/2014/03/toyota-foregoes.html