IRS Takes Nissan to Court Over Bermuda Tax Shelter

The IRS recently won a federal case against Nissan North American, when a federal court ordered the automaker to surrender paperwork on contracts worth $45.9 million. The company has been battling the IRS for months because of their tax complicated international tax strategy. The crackdown on evasion, and even tax avoidance, is gaining steam. We’ll see what pans out, but expect to see more stories like this.

Jalopnik reports:

Nissan denies any wrongdoing, and has been fighting with the IRS since March over the paperwork, saying the IRS was on "the epitome of a fishing expedition." But U.S. District Judge Todd Campbell in Nashville ordered Nissan to cough up the documents, saying the automaker's arguments weren't persuasive.

In court filings, the IRS doesn't say how much it thinks Nissan's North American arm avoided paying in taxes, or spell out exactly which of the numerous techniques corporations use to avoid U.S. taxes Nissan might have used. The data it wants involve Nissan's contracts with 31 accounting, insurance and law firms, covering taxes filed in fiscal 2006 and 2007.

According to the agency:

"The IRS has reason to believe that Nissan has moved all or some of its U.S. extended service contract business offshore to Bermuda, a tax haven country, with the possible purpose of structuring payments to outside professionals so as to avoid U.S. taxation of the company's gross receipts."

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Nissan Unveils Pivo 2 Concept Car

Nissan unveiled the new Pivo 2 concept car at the Tokio Motor Show a few days ago. The car features a 360-degree rotating cabin, 90-degree turning wheels, and braking and steering drive by wire capabilities. Below is a picture of this funky new concept car, thanks to Engadget.com.

Nissan and GM Hybrids Still Qualifies for Tax Credit

The IRS recently announced that purchasers of qualified Nissan and GM vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Nissan only sold 2,094 qualifying vehicles to retail dealers, while GM sold 2,927 qualifying vehicles to retail dealers in the quarter ending March 31, 2007.

The allowable credit amount for the vehicles is as follows:
Altima Hybrid — Nissan’s only certified hybrid vehicle — $2,350.
Chevrolet Silverado Hybrid 2WD — $250
Chevrolet Silverado Hybrid 4WD — $650
GMC Sierra Hybrid 2WD — $250
GMC Sierra Hybrid 4WD — $650
Saturn Vue Green Line — $650
Saturn Aura Hybrid — $1,300

2007 Nissan Altima Qualifies for Hybrid Credit

Last week the IRS announced that the new 2007 Nissan Altima Hybrid meets the requirements of the Alternative Motor Vehicle Credit as a qualified hybrid motor vehicle. The full credit amount for the vehicle will be $2,350 but will only be available to a limited number of taxpayers. For more information visit the IRS’s website.