In This Issue:
- The true cost of fines: Bills would address tax break for corporate fines
- Senate approves new protection for criminal antitrust whistleblowers
- Justice Department sinks ex-Navy engineer’s 15-year kickback scheme.
- Excerpt from The true cost of fines: Bills would address tax break for corporate fines:
Two members of the U.S. House of Representatives want to limit a tax deduction on settlements paid to the government by companies accused of wrongdoing. The bill – proposed by Reps. Peter Welch (D-Vt.) and Luis Gutiérrez (D-Il.) – would prevent companies from deducting fines and other penalties, whether imposed via a court judgment or a settlement agreement. Under current law, companies are prohibited from deducting “punitive” fines paid directly to the government. Often, however, it is not clear which fines are punitive, or the fines are paid to a “non federal entity,” such as the regulatory arm of Fannie Mae and Freddie Mac.
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