• Delicious




Allfirst Hopes To Recoup Rusnak Losses Through Tax Refunds

by Jason Gorringe, Tax-News.com, London

26 August 2002

It emerged last week that Allfirst, the US operation of AIB, is seeking to recoup via tax credits and refunds some $240 million of the $691 million in losses incurred by foreign currency trader John Rusnak

Speaking to the Irish Independent, Allfirst Chairman, Maurice Crowley revealed that the bank is in discussion with the US Internal Revenue Service, and that he is hopeful that up to 35% of the losses can be recovered in this way.

As Rusnak's losses pulled Allfirst's profits back between 1997 and 2001, and actually pushed its performance into the red last year, the bank has already received a $50 million refund on taxes paid in 2001.

However, the Irish Independent reported on Friday that: 'Excluding the $50 million already refunded, Allfirst could end up sitting on $190 million in tax credits for the future. This greatly enhances the company's cash and earnings potential and the size of dividend it could pay back to its parent if required.'

.

 

 






Write a comment