NEW YORK (TheStreet) -- Delphi Automotive (DLPH) said it would "vigorously contest" pressure by U.S. tax authorities to file taxes in the U. S. as a domestic company, when its tax base is in the U.K., Reuters reports.
The IRS told the auto parts supplier in June that it would be taxed as a U.S. company due to the sale of its assets to Delphi Holdings LLC after it emerged from bankruptcy in 2009, the company said in a regulatory filing on July 31.
Delphi said it was reincorporated in the U.K as a limited liability partnership, which allows it to save tax. The company said it had filed U.S. federal partnership tax returns between 2009 and 2011.
Shares of Delphi are up 0.64% to $67.74
TheStreet Ratings team rates DELPHI AUTOMOTIVE PLC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELPHI AUTOMOTIVE PLC (DLPH) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."