TV News LIES

Wednesday, Jul 30th

Last update05:24:54 AM GMT

You are here News Economy 18 Major US Corporations Use Tax Havens to Skirt $92 Billion In U.S. Taxes: CTJ

18 Major US Corporations Use Tax Havens to Skirt $92 Billion In U.S. Taxes: CTJ

E-mail Print PDF

Offshore accountsApple is not alone.  Dell, Microsoft and Fifteen Other Fortune-500 Corporations’ Financial Reports Indicate Their Offshore Profits Are In Tax Havens; Hundreds More Likely Do the Same

Recent Congressional hearings on the international tax-avoidance strategies pursued by the Apple corporation documented the company’s strategy of shifting U.S. profits to offshore tax havens. But Apple is hardly the only major corporation that appears to be engaging in offshore-tax sheltering: seventeen other Fortune 500 corporations disclose information, in their financial reports, that strongly suggests they have paid little or no tax on their offshore holdings. It’s likely that hundreds of other Fortune 500 companies are also engaging in similar strategies to take advantage of the rule allowing U.S. companies to “defer” paying U.S. taxes on their offshore income.

How We Know When Multinationals’ Offshore Cash is Largely in Tax Havens

Under current law, corporations can indefinitely defer paying U.S. income taxes on their offshore profits. Multinational corporations with offshore profits sometimes disclose, in their financial reports, the amount of tax they would pay if there were no “deferral” and their offshore profits were taxable in the United States.[1] But this potential tax rarely amounts to the full 35 percent U.S. corporate tax rate, since these companies typically have already paid some foreign income taxes on these foreign profits when they were earned. Companies are allowed a “foreign tax credit” against their U.S. tax when and if the profits are subject to U.S. tax. So a company that has already paid (for example) a 25 percent tax rate on its offshore income would only pay the difference between that amount and the U.S. corporate tax rate of 35 percent (in this example, 10 percent) when that income is repatriated to the U.S.

More...


Most Recent Related Stories...


Judge Orders Bank Of America To Pay $1.3 Billion Fine

Bank of AmericaA federal judge has ordered Bank of America to pay a $1.27 billion fine for fraud...

Banks accused of rigging silver price

silver price riggingDeutsche Bank, HSBC and Bank of Nova Scotia have been accused of attempting to rig the...

A third of Americans delinquent on debt

Americans in debtMore than a third of the country is in trouble when it comes to paying debts...

85 wealthiest are richer than poorest 3.5 billion

gatesThe U.N.'s annual Human Development Report released Thursday shows that the world's 85 richest people are...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!