AP and USA Today Fall for GE Tax Repayment Hoax

Another hoax perpetrated by the Yes Men is going on right now in real time.

Here's the fake press release announcing that GE would repay its $3.2bn tax refund.

Here's the AP story falling for the hoax.

Here's the USAToday story falling for the hoax.

(I'm not sure how long these will stay posted.)

And here's Business Insider story revealing it as a hoax.

Here's the press release, which is brilliant:

“We want the  public to know that we’ve heard them, and that we know many Americans  are going through tough times,” said GE CEO Jeffrey Immelt. “GE will  therefore give our 2010 tax refund back to the public and allow the  public to decide how to spend it.”

Immelt  acknowledged no wrongdoing. “All seven of our foreign tax havens are  entirely legal,” Immelt noted. “But Americans have made it clear that  they deplore laws that enable tax avoidance. While we owe it to our  shareholders to use every legal loophole to maximize returns – we also  owe something to the American people. We didn't write the laws that let  us legally avoid paying taxes. Congress did. But we benefit from those  laws, and now we'd like to share those benefits. We are proud to be  giving something back to America, and we are proud to set an example for  all industry to follow.”

Over the  coming weeks, GE will conduct a nationwide survey to determine how the  company's $3.2 billion returned refund is to be allocated. The survey  will be conducted both online and offline, and will permit the public to  weigh in on which of the recently-enacted budget cuts they would like  to see reversed.

In tandem with the  gift, the company is also announcing a host of new policies to restore  public faith in the GE brand, including a commitment to keep American  jobs in America, and to create one U.S. job for each new job created  abroad. The ambitious plan will overhaul accounting systems to allow  public transparency and phase out the use of tax havens in five years.  “Given my recent appointment as President Obama’s Chairman of the  Council on Jobs and Competitiveness, it is no longer appropriate for GE  to engage in practices that, whether by fact or perception, are at odds  with the greater good of the nation," Immelt said.

Immelt  outlined several concrete steps he would take to push for modernized  tax policies that reflect the realities of the global economy. "I will  personally ask President Obama to work with Congress to require  country-by-country reporting by multi-national corporations of the sales  made, profits earned and taxes paid in every jurisdiction where an  entity operates. Instead of moving money via “transfer pricing,”  corporations ought to pay taxes in the jurisdictions where profits are  actually made. If Congress is able to establish standard industry-wide  solutions, GE will close our tax haven operations abroad, including our  subsidiaries in Bermuda, Singapore and Luxembourg."

Further details on GE’s new policy will be released in the coming weeks.

About GE
GE  (NYSE: GE) is an advanced technology, services and finance company  taking on the world’s toughest challenges. Dedicated to innovation in  energy, health, transportation and infrastructure, GE operates in more  than 100 countries and employs about 300,000 people worldwide. For more  information, visit the company's Web site at www.ge.com.

PRESS CONTACTS

Samuel Winnacker GE Corporate, Assistant Director Communications & Public Affairs +1 615 375 6658 samuel.winnacker@ge.com