AIG sues US for tax payments

Guess who is paying for this? So besides funding casino gamblers at AIG, we’re now funding lawyers who are suing the owner. Even worse it involves money that was being hidden offshore where AIG could hide it. You may recall that the US is actively going after individuals who move money offshore but it’s been accepted by business for years. Will someone in Washington please locate a spine and knock some heads at AIG? This episode becomes more sickening by the day.

While the American International Group comes under fire from Congress over executive bonuses, it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens.

A.I.G. sued the government last month in a bid to force it to return the payments, which stemmed in large part from its use of aggressive tax deals, some involving entities controlled by the company’s financial products unit in the Cayman Islands, Ireland, the Dutch Antilles and other offshore havens.

A.I.G. is effectively suing its majority owner, the government, which has an 80 percent stake and has poured nearly $200 billion into the insurer in a bid to avert its collapse and avoid troubling the global financial markets. The company is in effect asking for even more money, in the form of tax refunds. The suit also suggests that A.I.G. is spending taxpayer money to pursue its case, something it is legally entitled to do. Its initial claim was denied by the Internal Revenue Service last year.

This comes back to the original problem that many have had with Geithner and company. He is not the person we need for these extraordinary times. We need someone who is much more aggressive about fighting these companies and restoring balance to a distorted and dysfunctional system. Geithner is not that person.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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