Tax-avoiding US corporations have offshored more money than the GDP of France: report

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Tax-avoiding US corporations have offshored more money than the GDP of France: report

Post by Guest on Thu Oct 06, 2016 3:12 am

Corporations are stashing more and more of their profits overseas, taking advantage of legal loopholes to avoid paying hundreds of billions in U.S. taxes, says a new report. The corporations involved include household names like Nike, Apple and Goldman Sachs.

The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) analyzed SEC filings from 367 Fortune 500 companies.  In 2009, U.S.-based multinationals held less than $1.25 trillion in overseas tax havens — and by 2015, that number climbed to $2.5 trillion. “To put that in context, it is an amount larger than the GDP of France,” said Clark Gascoigne, the deputy director of FACT, a coalition that includes Citizens for Tax Justice (CTJ), the Institute on Taxation and Economic Policy (ITEP), and the U.S. Public Interest Research Group (PIRG) Education Fund.

“Every year, corporations collectively report that they have tens of billion more in cash stashed offshore than they did the year before,” said Matthew Gardner of ITEP. “The hard fact is that the U.S. tax code incentivizes tax haven abuse.”

American tax laws allow corporations to stash profits overseas and indefinitely delay “repatriation.” While companies are technically required to disclose to the SEC how much they would have paid in U.S. taxes if they hadn’t offshored profits, in practice, few corporations report these numbers. Instead, they take advantage of a loophole in the law which allows companies to opt-out if calculating the tax bill is “not practicable.”


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