This website uses cookies to ensure you have the best experience. Learn more

Tax Paradise By Parking Profit Offshore

825 words - 4 pages

Tax Paradise by Parking Profit Offshore

There was a heated debate flowing among the headline of mainstream media about General Electric's 2010’s tax position. It was first published by the Times and pointed out that General Electric, by its aggressive strategy and “innovative” accounting, paid nothing in federal taxes in the year 2010, even it made billions in profit.

Generally speaking, it has become increasingly common for those gigantic multinationals to take advantages of the tax regulations by keeping those “geniuses” in their tax department and, at the meantime, exerting their powerful lobbyist skill. But how is it possible that such a giant American business with a profit of ...view middle of the document...

S. income statement to its overseas income statements and parking its profit in foreign countries, GE has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than most of its counterpart.

Beyond these two reasons, its extraordinary “success” is also based on an aggressive strategy that pursues fierce lobbying for tax breaks. It has long been known that GE has the best tax department over the word, which consists of more than 1000 tax exports, including former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress. Over the last decade, G.E. has spent tens of millions of dollars to push for changes in tax law and the most lucrative one allows G.E. to operate a vast leasing and lending business abroad with profits that face little foreign taxes and no American taxes as long as the money remains overseas.

In face of those shocked media and people, GE kept arguing that there is nothing illegal or even unethical about any of its tax strategy since its business truly has such a foreign oriented nature. We do agree that GE expanded abroad since last decade, which allowed it to book portion of its profits in low-tax countries such as Ireland and Singapore. But what we are questing is the...

Other Essays Like Tax Paradise By Parking Profit Offshore

China Merger and Acquision Essay

5275 words - 22 pages flexibility for subsequent transfers of their interests. By using multiple intermediate offshore holding companies for different FIEs, corporate groups can also readily accomplish many forms of intracorporate restructuring without becoming enmeshed in the Chinese regulatory system. Onshore-offshore transactions It is sometimes impossible to keep the deal entirely offshore, even when the purchaser is another foreign company. When the transaction

Whistler Corp Essay

614 words - 3 pages close both plants (Westford and Fitchburg) Decision Criteria • Cost efficiency based on an improved manufacturing process • Radar detectives significance to Whistler Corporation’s future competitive market Proof of Recommendation Option By moving all production offshore, it will enable Whistler Corporation to decrease manufacturing cost efficiencies and help them move successfully forward in the market. Closing down plant

Captive Insurance Company

3217 words - 13 pages , domiciled onshore or offshore, and has the option of writing the business of unrelated parties. (Saad. H, 2009) A firm choose to set up a captive insurance is because it can brings two major benefits. One of the benefits is financial benefit. A captive could reduce insurance costs by correctly establishing the risk level and avoiding the premium loading for a commercial insurer’s overheads and profits. Also, a captive could write coverage for

Aarkstore - ConocoPhillips Oil & Gas Exploration and Production Operations and Cost Analysis - Q3, 2014

4806 words - 20 pages , Depletion and Amortization From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 57 Figure 48: ConocoPhillips, Exploration Expenses, By Country/Region, US$ mil, 2009-2013 57 Figure 49: ConocoPhillips, Income Tax Provision (Benefit) From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 58 Figure 50: ConocoPhillips, Net Income/ Loss From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013

Capitalism and Social Justice

651 words - 3 pages raising the questions of why they should pay taxes while many rich people and multinationals are evading this duty. This outrage touches the core of justice and will force government action. And indeed in recent years we can observe a paradigm shift in the way nation-states deal with tax havens. In the case of Switzerland for example, many identities of German owners of bank accounts have been made public by whistle blowers selling a CD with


1687 words - 7 pages Offshore Outsourcing In 1973, a monumental shift was prevailing where U.S. companies were sending low skilled jobs within the manufacturing industry to offshore countries to reduce labor cost while maximizing profits. Outsourcing a variety of American jobs overseas has become common practice during the last decade or so. American wages are higher than offshore wages, and it saves American companies money. The effects of outsourcing

No Sales Tax on Person to Person Online Sales

563 words - 3 pages millionaire so any profit that is brought in from the sale of used items should be kept as just that, profit. If they have to start applying a sales tax to the items they are selling the general price will have to be raised to cover the amount that will come out for that sales tax. With the prices going higher and higher to cover taxes, consumers will be less likely to purchase the items. Also, it would be difficult to record and calculate the

Taxation System in India

1314 words - 6 pages and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc. In last 10-15 years, Indian taxation system has undergone tremendous reforms. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax

The Assessment of Performance Evaluation of Cable Industry in Bangladesh

5902 words - 24 pages production of 4306 M.T. Cables and Conductor in a year and has achieved maximum yearly Sales of 4638 M.T. with a turnover of Taka 634 Million and earned profit of Taka 55 Million per year on average during the last 3 years. The Company has received orders after competiting various International Tenders floated within the Country financed by IDA, ADB, KAFED Loan & IDB Loan etc. and successfully executed such export orders received from Rural


1517 words - 7 pages Every entity at the end of the accounting period will make financial record in order to determine the profit or loss during the period. Any income of the entity must be subject to the tax even though they are having profit or suffering loss. The accounting treatment for income taxes is determined by Australian Accounting Standards Board (AASB) 112 which adopts the tax effect method that incorporates both current and future tax consequences of

Profatibility Ratios for Mac Donalds and Kfc Company

2366 words - 10 pages $2,387.0+1,179.1 Net sales (ap. A2) $ 2,998.7 $ 2,924.7 Operating profit margin 0,95 times 1,21 times * Effective Tax Rate We calculate this profitability ratio by dividing the income taxes of the company by her earnings before income tax. This ratio measures ………………….. I am going below to calculate, analyze and compare the effective tax rate

Related Papers

Tax Evasion Essay

5284 words - 22 pages a huge number of underdeveloped countries like Bangladesh (Khan and Senhadji, 2000). Measuring the tax gap resulting from tax administration traditional and annoyance strategies imposes special challenges; more work needs to be done on this. 7.Profit shifting/Capital flight: Typically, subsidiaries of a MNC are treated as separate entities by tax authorities, i.e. they are liable to taxes in the country where they operate and reside. The

Offshore Outsourcing Essay

1731 words - 7 pages agreement while exchanging such things as goods, payments, and services. Offshore Outsourcing has become popular for many reasons such as: saving costs, improving quality, enhancing innovation opportunities, tax benefits, and reducing wasted resources to name a few. However, some may argue that outsourcing has a negative impact on the work force and economy of the United States. With many job opportunities making their way overseas, it may be

Transfer Pricing Essay

3296 words - 14 pages subsidiaries in low-tax jurisdiction and by U.S. subsidiaries to its foreign parent situated in low-tax jurisdiction (Gravelle, Jane. G, 2015). In 1950, corporate taxes accounted for 26.5% of the total federal tax revenue. In comparison, 2013 figures show that the corporate taxes account for only 9.9% of the total federal tax revenue. This decline in corporate taxes is due to in part to the shifting of income offshore. (Refer Annexure 2 – Share of

Market Analysis On South Africas Mining Fiscal Regime 2014 Trend, Size, Share, Growth And Forecast

839 words - 4 pages which includes Royalties, Depreciation, Corporate Tax, Capital Gain Tax, Dividend Tax, Real Property Tax, Withholding Tax, Branch Profit Tax, Loss Carry Forward and Value Added Tax, VAT. Reasons to buy Gain an overview of South Africa's mining fiscal regime. Key highlights The Department of Mineral Resources (DMR) formulates and implements mining policy, and ensures the exploration, development, utilization, processing and management of the