Strange

Merrill Lynch pays no corporation tax for the next 60 years, why?

by SOLARLIFE | August 15, 2008 at 01:42 pm

328 views | 12 Recommendations | 9 comments

Well they lived the business of selling sub-prime dept to investors.The giant american investment bank made losses of $29 bn in the sub-prime mortgage crisis scam. What are they doing now ? Business as usual selling the loss of $29bn to it's London offices, where they can balance the loss for decades, probably for 60 years. Enron outsourced it's loss to offshore companies, what an effort.

So far this year financial companies across the world have reported writeoffs totalling £250 billion. Economists say this figure could double before the credit crunch comes to an end.

Merrill has offices across London including a financial centre at Paternoster Square by St Paul's Cathedral. which houses two of the largest trading floors in Europe.

Accountants said that the tax structure allows Merrill to offset losses from one part of the business.

John Gu, a tax expert at KPMG International, said: "It obviously makes commercial sense, though it would be subject to certain legal and tax law restrictions. No company wants the mismatch by losing money on one unit while paying tax on another profitable operation."

Merrill was founded in 1914 and has become one of the world's biggest banks

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bill hicks

at 13:55 on August 15th, 2008

Most large financial institutes will not pay taxes for years. NY state and city are in big trouble. Taxes were paid in advance and now they are all filling for refunds. They do not have the money to give back.

SOLARLIFE

at 14:02 on August 15th, 2008

Hi bill hicks, you are the specialist, should have asked you. If NY doesn't have the money, the should sell some shares on "No-money refunds" to the banks with a nomoney-back guarantee. Well, I was just bank joking....the worst still to come.

bill hicks

at 14:23 on August 15th, 2008

It is too far gone to fix. It will either collapse or be hyper -inflated. They have no choice. The hyperbolic curve we are in is the most steep ever.

Rhonda J Mangus

flagged this story as Good Stuff

at 14:05 on August 15th, 2008

SOLARLIFE, I like this story. It's good stuff.

SOLARLIFE

at 14:48 on August 15th, 2008

Thanks Rhonda for Flag, "Merrill Lynch", looks not good for tax havens, no money, no tax, no tax haven. Well the Bahamas, cayman Islands will still exist.