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Thread: American Writes Off $592 Million Cash Trapped in Venezuela
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Old Jan 17, 2016 | 12:00 pm
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george 3
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Originally Posted by taxatty56
AA may have made a special "blocked income" election--very common for funds trapped overseas, especially Venezuela--that way, AA doesn't get taxed on it until it's actually received, if ever, at the applicable exchange rate.
I believe the writeoff/writedown was GAAP not tax. The currency is not deemed "worthless" which is the requirement for deduction for tax purposes. Generally.

That being said, it says much about the desirability of multinational companies like AA to do business in and with Venezuela.
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