Friday, May 14, 2010

Companies Dodge $60 Billion in U.S. Taxes

Jesse Drucker has two important stories out about transfer pricing - a subject TJN is increasingly working on (see our transfer pricing page currently under construction, here.) The first article says:

"In February, the administration said it would target some of the techniques companies use to shift profits offshore -- part of a package intended to raise $12 billion a year over the coming decade.

That’s only about a fifth of the $60 billion in annual U.S. tax revenue lost to thousands of companies’ income shifting, according to a study published in December in the National Tax Journal by Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon."

Due to time pressures, we can't do this important article justice - but Richard Murphy has done a good job here. The second article is here. Both are valuable contributions to this important topic.

A Senior Vice President for Oracle illustrates the attitude of the tax abusers:

"Can someone please explain to me how following the tax laws of the United States became a reportable issue for Bloomberg News?” Glueck wrote. "

In other words, since something is strictly legal (we assume), then it must be OK. Try telling that to the victims of Apartheid or slavery.


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