It's hard to believe that GE, which made a domestic profit of $5.3 billion last year, not only didn't have to pay any taxes but, because of their skilled army of tax experts and lobbyists, was actually owed $3.2 billion by the government. Even harder to believe is that they would, for some reason, after all this effort, do a complete about-face and return the money and promise to stop using offshore tax havens forever. And yet that's what AP reported earlier today:
Facing criticism over the amount of taxes it pays, General Electric announced it will repay its entire $3.2 billion tax refund to the US Treasury on April 18.
GE uses a series of foreign tax havens that the company says are legal and that led to an enormous refund for the 2010 tax year...
The company, based in Fairfield, Conn., plans to phase out tax havens over 5 years and said it will create one job in the US for each new job it creates overseas.
Wow! A giant multinational corporation deciding not to weasel out of paying its fair share of taxes? That's unreal! Actually ... wait, yes, it is not real.
The Associated Press has withdrawn its story about General Electric repaying its entire $3.2 billion tax refund to the US Treasury on April 18. The story was based on a press release that GE says was a hoax.