DOJ Tells Toyota $1.2 Billion Criminal Fine Is Not Tax Deductable

The Department of Justice announced a record $1.2 billion settlement with Toyota in a criminal probe of its handling of sudden acceleration complaints. The criminal charge claims Toyota defrauded consumers via misleading safety statements. Toyota Motor Corp’s deal is a record in several ways.

First, it resolves a record criminal probe of an automaker. It is the largest financial penalty of its kind ever imposed on an auto company, said Attorney General Eric Holder. Second, the dollars are big. Toyota will pay a record $1.2 billion to settle the criminal probe. Third, Toyota admitted that it misled consumers about two problems that caused cars to accelerate while drivers were trying to do the reverse.

Finally, Toyota Agreed to Forego Tax Deduction for $1.2 Billion Settlement With DOJ. Deducting the settlement would have made taxpayers bear 35% of the cost

7msynthetic - 3/20/2014 1:13:56 PM

+1 Boost

Department of Dictatorship

nguyenvuminh - 3/20/2014 2:23:10 PM

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Not sure I understand why Toyota's fine is not tax deductible whereas Chase's fine is tax deductible.

Agent009 - 3/20/2014 4:19:09 PM

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If it is deductible then 35% of it goes away. Effectively they have reduced their fine via a loop hole.

800over - 3/24/2014 9:45:23 AM

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009 obviously you follow this thread....why don't you answer the questions put to you? Why did Chase get to write off their fine? Because it's a witch hunt.

7msynthetic - 3/20/2014 6:59:53 PM

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^^^^ How does that compare to Chase (and all others then?) And since when was the Department of Justice the IRS? This is tax law and the DOJ just can't make tax law up.

7msynthetic - 3/20/2014 7:03:05 PM

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Ok, so I read the article and Toyota agreed that the fine would not be tax deductible. YET ANOTHER STUPID MISLED HEADLINER - wonder if any of yoos guys went to school eh? ... on a lighter note, they made 5.2B last quarter - WOW!! Wonder what Chrysler's ignition fine will do... hmmmmm.

Agent009 - 3/20/2014 9:33:12 PM

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Do you seriously think for a minute that if the DOJ didn't make it part of the agreement they would have not tried to deduct it?