Top Leaderboard, Site wide
Truthdig: Drilling Beneath the Headlines
June 22, 2017 Disclaimer: Please read.
x

Statements and opinions expressed in articles are those of the authors, not Truthdig. Truthdig takes no responsibility for such statements or opinions.


Senate GOP Releases Obamacare Overhaul to Immediate Criticism From Both Sides of the Aisle




What’s Next for the Bill Cosby Sex-Assault Case?
Teeth

Truthdig Bazaar
Rereading Frederick Jackson Turner

Rereading Frederick Jackson Turner

Frederick Turner, John Mack Faragher
11.01

more items

 
Ear to the Ground
Email this item Print this item

Large U.S. Firms Hold $2.1 Trillion Overseas to Dodge Taxes

Posted on Oct 7, 2015

Wikimedia 

The 500 largest U.S. companies would owe an estimated $620 billion in U.S. taxes were it not for the more than $2.1 trillion in offshore cash that most of the firms hold in foreign tax havens, according to a report released this week.

The study, by Citizens for Tax Justice and the U.S. Public Interest Research Group Education Fund, found that almost three-quarters of the firms on the Fortune 500 list of biggest American companies by gross revenue operate tax haven subsidiaries in countries such as Bermuda, Ireland, Luxembourg and the Netherlands.

To obtain these figures, the study used the companies’ own financial filings with the Securities and Exchange Commission.

Reuters reports:

Technology firm Apple was holding $181.1 billion offshore, more than any other U.S. company, and would owe an estimated $59.2 billion in U.S. taxes if it tried to bring the money back to the United States from its three overseas tax havens, the study said.

The conglomerate General Electric has booked $119 billion offshore in 18 tax havens, software firm Microsoft is holding $108.3 billion in five tax haven subsidiaries and drug company Pfizer is holding $74 billion in 151 subsidiaries, the study said.

“At least 358 companies, nearly 72 percent of the Fortune 500, operate subsidiaries in tax haven jurisdictions as of the end of 2014,” the study said. “All told these 358 companies maintain at least 7,622 tax haven subsidiaries.”

Fortune 500 companies hold more than $2.1 trillion in accumulated profits offshore to avoid taxes, with just 30 of the firms accounting for $1.4 trillion of that amount, or 65 percent, the study found.

Fifty-seven of the companies disclosed that they would expect to pay a combined $184.4 billion in additional U.S. taxes if their profits were not held offshore. Their filings indicated they were paying about 6 percent in taxes overseas, compared to a 35 percent U.S. corporate tax rate, it said.

“Congress can and should take strong action to prevent corporations from using offshore tax havens, which in turn would restore basic fairness to the tax system, reduce the deficit and improve the functioning of markets,” the study concluded.

Read more here.

—Posted by Roisin Davis

 

 

Banner, End of Story, Desktop
Banner, End of Story, Mobile
Watch a selection of Wibbitz videos based on Truthdig stories:


Get a book from one of our contributors in the Truthdig Bazaar.

Related Entries

Get truth delivered to
your inbox every day.



New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

Join the conversation

Load Comments
Right Top, Site wide - Care2
 
Right Skyscraper, Site Wide
Right Internal Skyscraper, Site wide

Like Truthdig on Facebook