Merrill to avoid UK tax after $29 bln
Merrill Lynch & Co Inc is unlikely to pay corporation tax in the UK for several decades after it charged $29 billion of losses to its London-based subsidiary, the Financial Times said.
Last month, Merrill sold $30.6 billion of CDOs, to buyout firm Lone Star Funds, for $6.7 billion, or about 22 cents on the dollar.
After the latest sale, Merrill has a UK operating loss of about $29 billion that it can carry forward indefinitely for tax purposes, the paper said.
At the current corporation tax rate of 28%, the bank will be able to offset losses against future profits, lowering its UK tax bill by as much as $8 billion, according to the paper.
Merrill could not be immediately reached for comment. (Reuters)
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