NU Online News Service, March 10, 12:00 p.m.EST
|American International Group Inc. (AIG) said it has taken stepsto protect about $65 billion in tax assets by adopting a “Tax AssetProtection Plan.”
|Tax loss “carryforwards” are used by companies to reduce taxliabilities. AIG said it had a $32.3 billion federal net operatingloss carryforward, $27.8 billion in capital loss carryforwards and$4.6 billion in foreign tax carryforwards but the company's abilityto use them could be “significantly limited” if one or moreshareholders buy 5 percent or more of its shares.
|“The plan is designed to protect AIG's valuable tax assets byreducing the likelihood of an unintended 'ownership change' throughactions involving AIG's securities,” said Robert S. Miller,chairman. He said the plan is “particularly important as the U.S.Department of the Treasury begins to reduce its position inAIG.”
|If too many people become 5 percent shareholders, it could beconsidered an ownership change under the Internal Revenue Code andaffect the use of the carryforwards.
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