$$$ Talks, and Fox Walks

[forky123]

I imagine it's US accountants or someone that works for the IRS you need. Supposedly settlements can be put down as business expenses unless they include a penalty paid to a government agency. I have no idea about US taxes but seen two sources now saying they may be able to write off at least some of it. 

[reader]

From Forbes

Fox $787 Million Dominion Settlement Tax Write Off Is No Surprise

The $787 million settlement by Fox News and Fox Corporation to resolve the Dominion defamation suit made big news, but the tax news that this is a deductible business expense to Fox should be no surprise. It appeared that Fox was likely to lose the defamation suit, and likely would have had to pay much more in a verdict. That made the settlement a good business move. Some sources are expressing shock that this kind of liability could be a legitimate business expense.

Compensatory settlements by businesses are clearly deductible if they arise out of the business being conducted. Fox clearly meets that test. It doesn’t matter if the conduct producing the expense is later viewed as wrongful. The only exception is for certain confidential settlements in sexual harassment cases. In fact, even punitive damages are tax deductible when paid by businesses. Tax bills have been introduced in Congress over the years to change that, but the bills never gained traction. Sometimes, even amounts paid to the government are deductible, despite corporate wrongdoing.

For decades, Section 162(f) of the tax code prohibited deducting any fine or similar penalty paid to a government for the violation of any law. That includes criminal and civil penalties, as well as sums paid to settle potential liability for a fine. This sounds absolute, but the law is riddled with exceptions. To begin with, the rules cover only government payments, and some companies find ways to write off even the biggest payments.

[Suckrates]

2 hours ago, reader said:

From Forbes

Fox $787 Million Dominion Settlement Tax Write Off Is No Surprise

The $787 million settlement by Fox News and Fox Corporation to resolve the Dominion defamation suit made big news, but the tax news that this is a deductible business expense to Fox should be no surprise. It appeared that Fox was likely to lose the defamation suit, and likely would have had to pay much more in a verdict. That made the settlement a good business move. Some sources are expressing shock that this kind of liability could be a legitimate business expense.

Compensatory settlements by businesses are clearly deductible if they arise out of the business being conducted. Fox clearly meets that test. It doesn’t matter if the conduct producing the expense is later viewed as wrongful. The only exception is for certain confidential settlements in sexual harassment cases. In fact, even punitive damages are tax deductible when paid by businesses. Tax bills have been introduced in Congress over the years to change that, but the bills never gained traction. Sometimes, even amounts paid to the government are deductible, despite corporate wrongdoing.

For decades, Section 162(f) of the tax code prohibited deducting any fine or similar penalty paid to a government for the violation of any law. That includes criminal and civil penalties, as well as sums paid to settle potential liability for a fine. This sounds absolute, but the law is riddled with exceptions. To begin with, the rules cover only government payments, and some companies find ways to write off even the biggest payments.

 

So basically, they will financially Benefit from the write-off on their taxes ?     Now aint that a hoot,  no apology and they MAKE money on the deal....... The RICH get Richer....

[reader]

15 hours ago, Suckrates said:

 

So basically, they will financially Benefit from the write-off on their taxes ?  

Well, they still have to shell out the $787m but get a deduction that reduces their tax liability. They still end up losing hundreds of million. Not a win by any measure and remains the largest civil penalty.

[Suckrates]

14 minutes ago, reader said:

Well, they still have to shell out the $787m but get a deduction that reduces their tax liability. They still end up losing hundreds of million. Not a win by any measure and remains the largest civil penalty.

It's NOT enough !     The penalty doesnt fit the crime here.   AND, Fox is STILL lying away..........

[reader]

Fox owes it's success to lying. Like sanctions on Russia, it doesn't keep Putin from lying and it won't stop Tucker Carlson, et al, going forward, either.

The ONLY thing that will is for viewers not to tune in and advertisers not to advertise.  But since Fox is the most popular and profitable cable network, sadly neither scenario is likely.

[JKane]

Ultimately the investment fund holding Dominion got the payout they were after (an investment fund's only real goal, fuck the company...) and Fox wouldn't have admitted wrongdoing and/or apologized especially with all the other litigation still pending it would've become evidence for.  Hopefully those suits keep the juicy details flowing!  

And this does leave Dominion a massive war chest to potentially put Newsmax and OAN into receivership, so there's that.