Glassmaker Guardian Industries Corp. cannot deduct a €20 million fine it paid the Commission of the European Community for price-fixing activity because federal law bars deductions for penalties paid to foreign government entities and the commission qualifies as one, the U.S.
Tax Court said Thursday.
The company argued its payment was deductible because the European Community isn't a government of a foreign country or an agency or instrumentality of a foreign government.
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2014-07-21T13:00:00European Price-Fixing Fine Not Deductible: US Tax Court glassonweb.com