The report from Martin A. Sullivan, an economist and columnist for TaxNotes, a daily journal on tax law and legal issues, said that 11 tax havens held this money, such as Luxembourg (0.9% of earnings) and the Cayman Islands (5.2%).
His analysis of recent Commerce Department data noted that these 11 countries, accounted for only 19% of the overseas economic activity of these companies, taking into account their assets, sales, costs of equipment, and number of employees. He said that big businesses are contributing less to the nation’s tax coffers; corporate taxes last year accounted for only 7.4% of total federal tax receipts, the second-lowest level on record behind 1983.
Meanwhile, US Treasury officials say fraudulent accounting has gone up and blame tracking problems on increased globalisation, and reporting laws that need reforming.
The US government wants to try and curb the sheltering and is investigating American companies that artificially prop up profits in low-tax countries.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states