John Hancock Loses $560 Million Tax Lawsuit
by Joseph M. Donegan on August 23, 2013
The U.S. Tax Court recently ruled against the John Hancock Life Insurance Co. in a tax lawsuit involving hundreds of millions in deductions, Bloomberg News reports.
The court opposed John Hancock's argument that tax deductions on a series of leveraged lease transactions - including depreciation, rental and interest expense, and transaction costs - amounting to $560 million were valid. The issue involves the insurance company's use of lease-in-lease-out and sale-in-lease-out transactions - notably referred to as LILO and SILO. These transactions occur when companies purchase sizable assets, which are then leased to third parties for use. Most companies then adopted the practice of claiming deductions on the assets, Bloomberg notes.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.