Prem Watsa And Fairfax May Owe $400 Million After Improper Tax Returns.

Prem Watsa’s Fairfax Financial Holdings (TSE:FFH) may be in trouble with the IRS concerning a tax break it received by offsetting the income it received from Odyssey Re Holdings Corporation against losses at Fairfax. The possible infringement occurred from 2003 to 2006 and involved a tax break of $400 million USD. The new complaint received by the IRS’s Whistleblower Office by a Hedge Fund was reported by the New York Times yesterday. The IRS has so far declined to comment on its willingness to investigate the allegation. If they do find any supporting evidence however they would certainly be interested in…