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PNC to save billions from tax ruling: report
NEW YORK |
NEW YORK (Reuters) - PNC Financial Services Group Inc. (PNC.N) could save billions of dollars in federal taxes from its purchase last week of National City Corp. NCC.N, the Wall Street Journal reported Wednesday, citing tax experts.
The tax benefit would stem from a ruling in September by the Internal Revenue Service, which lifted the limit on the amount of a purchasing bank's taxable income that a target bank's losses can offset. That allows the buyer of a bank to get immediate tax benefits instead of having to do so over several years.
Robert Willens, an independent corporate tax analyst based in New York, estimated the tax savings to PNC could reach as high as $5.1 billion, according to the Journal.
The paper quoted PNC's Chief Financial Officer Richard Johnson as saying that $5.1 billion figure was too high.
On Friday, PNC agreed to acquire Ohio-based National City in a government-supported $5.6 billion and created the No.5 U.S. bank by deposits.
(Reporting by Phil Wahba; Editing by Kazunori Takada)
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