Hewlett Packard Co Loses $190 Million Tax Case Against IRS-Reuters

Reuters reported that Hewlett Packard Co on Monday lost a battle with the U.S. Internal Revenue Service for more than $190 million in tax refunds tied to a Dutch tax shelter designed by the derivatives arm of American International Group. The ruling turns a spotlight on an aggressive tax-cutting strategy created last decade by AIG Financial Products and bankrolled by several European banks. The strategy involved trading derivatives with the aim of generating capital losses and foreign tax credits for large corporations, like HP, which then used them to try to lower their U.S. tax bills. Judge Joseph Goeke of United States Tax Court in Washington, D.C., ruled against HP.