Warren Buffet's wealth has become synonymous, in the minds of many leftists, with what they consider the evils of an unfair tax code. But is the tax code unfair, or is Buffett engaging in unscrupulous practices? Bloomberg News reports that Buffett's Berkshire Hathaway, owns an airplane company that has been sued by the Federal Government for no less than $366 million in back taxes. Here's the details:
NetJets Inc., the private-plane company owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), was countersued by the U.S. over $366 million in taxes and penalties.[...]
Claiming the federal Internal Revenue Service wrongfully assessed a so-called ticket tax -- an excise tax on payments made in exchange for air transportation -- to private aircraft owners maintaining their own planes, the Columbus, Ohio-based company demanded refunds and abatements.
The federal government, in a revised answer and countersuit filed yesterday in federal court in Columbus, rejected NetJets’ claims and alleged that four of the company’s units owe unpaid taxes and penalties. NetJets Aviation Inc. owes more than $302.1 million, and another unit, NetJets International, is liable for $52.9 million, the U.S. said. Executive Jet Management Inc. owes $10 million while NetJets Large Aircraft owes $1.19 million, the U.S. claimed.
This is the second time Buffett's company, or one of its subsidiaries, has been sued by the IRS for tax evasion. The Blaze itself reported in August of last year that Berkshire Hathaway owed back taxes dating back to 2002. This new suit suggests that there may be even more to the story of the company's loose interpretation of the tax code and, not coincidentally, to Buffett's supposedly scandalous personal tax rate.