BP Passes the Buck to Taxpayers
LOS ANGELES (MarketWatch) -- BP PLC will reduce its contribution to U.S. coffers by roughly $10 billion due to a tax credit the company is claiming it incurred from the Gulf of Mexico oil spill.
The oil giant said Tuesday that it is incurring a charge of $32.2 billion from the Deepwater Horizon disaster response, and as such, it is claiming a $9.9 billion taxation credit.
Asked in a conference call Tuesday about whether it has discussed the tax credit with President Barack Obama's administration, BP's outgoing chief executive, Tony Hayward said: "We have followed the IRS regulations as they're currently written."
... The company has agreed to put $20 billion in an escrow account to pay claims for oil-spill damages ... But half of that may now come out of government coffers, and it could prove to be embarrassing for the Obama administration