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BP p.l.c. Message Board

  • ndavenport_mba ndavenport_mba Feb 17, 2011 7:04 PM Flag

    TAX EVASION OR BP CLAIM?

    The typical fisherman has this dilema:

    Tax return 2009 shows $300K income and $250K expenses, net $48K, or 4K per month
    Tax return 2008 shows $250K income and $220K expenses, net $30K.

    Now the fisherman files a claim for 5 months lost income at $500K, whereas net income from most recent tax return shows $4K per month or $20K lost income over 5 months.

    If BP acknowledges the $500K claim as legit, the IRS sues for tax evasion and the fisherman goes to jail after paying millions of dollars in back taxes. If BP rejects the claim, then the guy has to go to court and under oath explain how his prior tax return does not accurately reflect the true income without risking purgery and tax evasion.

    Claimants are angry? Over what? That the law does not allow them to rip off IRS and BP at the same time?

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    • "That the law does not allow them to rip off IRS and BP at the same time?"

      ==============================

      BTW,

      How much is BP and Exxon paying in taxes?

    • Addendum: And it makes it worse when the fisherman showing $4K per month net income was paid $20k per month by BP as part of the clean-up. So where is the lost income?

    • Good one!

    • Not to mention that bp is head and shoulders above the industry on replacing reserves year-on-year.

    • Persuasive? I am destroying his arguments and exposing his logic. If this were a debate, the score would be 100 to 0.

      I am good with the victims types, at using their own data, their own arguments, and their own logic against them. This guy is giving me infinitely easy material.

    • Repeat: There are not enough legitimate claims for BP to put out $20B of funds. So the question for the claimants trying to get an illigitimate piece is Tax Evasion or BP Claim?

      Who wants to play? Stakes include jail time and IRS tax liens.

    • Why if I was so inclined to buy an oil stock why would I not buy Exxon instead of this Exxon wanabe called BP?

      Good Question:

      BP is up 30% over the past 6 months and still significantly undervalued, XOM is up 40%.

      I have not done an analysis of XOM, but I suspect that the industry is a rising tide floats all boats situation.

      That said, I am convinced that as BP recovers fromt he spill, at some point the reduction in future liabilities combined with its current low P/B and P/E will mean much higher than industry average stock price appreciation.

      Make sense? The question to you is why would you bet against either of these obvious beneficiaries of rising oil prices and world economic recovery?

    • Make sense?
      ----------------
      Not really, ndavenport_mba.

      ===============================

      The question to you is why would you bet against either of these obvious beneficiaries of rising oil prices and world economic recovery?

      ----------------

      I haven't bet against BP!
      I don't know how many times I have to say that.

      But at the same time why would I buy a stock in a company that has a poor corporate safety culture and have to wonder when the next shoe was to fall. To me it isn't a matter of if, but when this will happen.

      If I wanted to gamble I would go to Los Vegas, the odds are better.


      .

    • BP Future Reserves?

      Analogy: After computer interface technology goes to verbal inputs/outputs, what will happen to Apple? Microsoft?

      When most common chemicals are banned due to global warming, what will happen to P&G, Clorox, and chemical manufacturers?

      In this case, demand for oil, unless you, your neighbors, your family and everyone you know just decided to walk in the snow to the store, and fly on your bike (not an airplane) cross country on vacation, demand for oil will always push politics toward allowing oil companies to extract and refine oil for basic consumption. Of all the examples by analogy, oil is clearly the most compelling and most difficult to replace.

    • Why if I was so inclined to buy an oil stock why would I not buy Exxon instead of this Exxon wanabe called BP?

      Where is BP's future reserves going to come from the Gulf of Mexico, the Russian Arctic, Lybia?

      Please tell us?


      .

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