The Obama administration's pledge to crack down on offshore tax havens has touched the auto industry.
A federal judge says Nissan must turn over details of financial holdings in Bermuda to the Internal Revenue Service as part of an audit of the company's 2006 and 2007 fiscal years.
Nissan North America was undergoing what it calls a routine audit last year when the IRS asked for all documents relating to its business activity in Bermuda. David Reuter, Nissan's chief U.S. spokesman, said the Bermuda operations are not significant, and said Nissan resisted the IRS request last year because "the amount of documentation they were asking for was, we felt, excessive."
Said Reuter: "This started off real routine and got real complicated real fast."
To force Nissan to comply, the IRS sued Nissan in federal court in Nashville and won.
"We will comply, of course," Reuter says, "but we don't think they will find anything wrong."