John Hancock Gets Warm Reception in Foreign Tax Credit Appeal

A $100 million appeal by 401(k) trustees over how John Hancock Life Insurance Co. uses foreign tax credits drew tough questions from a panel of Eleventh Circuit judges, who signaled a willingness to approve of the company’s practices.

The main problem with the trustees’ argument is that these tax credits wouldn’t exist without John Hancock, because the 401(k) plans can’t claim the credits on their own, Judge Andrew L. Brasher said during the arguments in Miami.

The credits actually exist because of the “joint relationship” between John Hancock and its clients, said Matthew Weinshall, the Podhurst Orseck PA attorney ...