Tax

News Release | MASSPIRG Education Fund | Tax

Study: 72% of Fortune 500 Companies Used Tax Havens in 2014

 

Tax loopholes encouraged more than 72 percent of Fortune 500 companies – including 8 companies head quartered in Massachusetts – to maintain subsidiaries in offshore tax havens as of 2014, according to “Offshore Shell Games,” released today by MASSPIRG Education Fund, and Citizens for Tax Justice. Collectively, the companies reported booking nearly $2 trillion offshore for tax purposes, with just 30 companies accounting for 65 percent of the total, or $1.35 trillion.

Report | MASSPIRG Education Fund | Tax

Biggest Tax Dodgers

 U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or individuals when it comes to the tax code. Rather than paying their full share, many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year. These are the 30 worst offenders.

Report | MASSPIRG Education Fund | Tax

Offshore Shell Games 2015

U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or individuals when it comes to the tax code. Rather than paying their full share, many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year.

News Release | MASSPIRG | Tax

Deepwater Horizon Settlement Comes with $5.35 Billion Tax Windfall

Today’s announcement by the U.S. Department of Justice of a proposed $20.8 billion out-of-court settlement with BP to resolve charges related to the Gulf Oil spill allows the corporation to write off $15.3 billion of the total payment as an ordinary cost of doing business tax deduction. The majority of the settlement is comprised of tax deductible natural resource damages payments, restoration, and reimbursement to government, with just $5.5 billion explicitly labeled a non-tax-deductible Clean Water Act penalty. This proposed settlement would allow BP to claim $5.35 billion as a tax windfall, significantly decreasing the public value of the agreement, and nearly offsetting the cost of the non-deductible penalty.

Media Hit | Tax

Your View: Time to end the corporate tax dodge

As summer arrives and hard-working Bay Staters stretch back on sandy shores, many of the corporations that do business here are also taking advantage of places like Bermuda and the Cayman Islands — to dodge their share of taxes. But last week a public hearing at the Statehouse discussed closing a key loophole that currently allows multinational companies to use offshore tax havens to avoid paying Massachusetts taxes.

Testyfying before the Joint Committee on Revenue, today, MASSPIRG urged the committee to support An Act closing a corporate tax haven loophole, HB 2477 and SB 1524. The bill will reduce corporate tax avoidance through the use of offshore tax havens saving Massachusetts taxpayers  $79 million a year while making the tax code fairer for ordinary taxpayers and small businesses.

 

Resource | Tax

Testimony to close off shore tax haven in MA

MASSPIRG Testimony in support of An Act closing a corporate tax haven loophole, HB 2477 and SB 1524 to reduce tax avoidance through the use of offshore tax havens saving Massachusetts taxpayers  $79 million a year while making the tax code fairer for ordinary taxpayers and small businesses.

An Act closing a corporate tax haven loophole, HB 2477 and SB 1524 was filed by Representative Josh Cutler (Duxbury) and Senator Mark Montigny (Montigny)  and cosponsored by a bipartisan group of 57 lawmakers.  The bill, already a law in place in Oregon and Montana, also known as the “water’s edge” loophole would require that companies treat profits made in Massachusetts and funneled to known tax havens like the Cayman Islands as domestic taxable income. Making this change to the tax code would save Massachusetts taxpayers $79 million a year.

 

 

News Release | MASSPIRG Education Fund | Tax

Lawmakers Call for Closing Off Shore Tax Haven Loophole

As Tax Day approaches tomorrow, it’s a good time to be reminded of how ordinary taxpayers and specifically small businesses pick up the tab for offshore tax loopholes used by many large multinational corporations. MASSPIRG was joined today by Representatives Josh Cutler (D-Duxbury) and Lenny Mirra (R-West Newbury), Senator Mark Montigny (D-NewBedford) and Massachusetts Fair Share to release a new study by the MASSPIRG Education Fund revealing that the average Massachusetts small business owner would have to pay an extra $4,031 in state and federal taxes to make up for the money lost in 2014 due to offshore tax haven abuse by large multinational corporations and to call for the passage of a state bill to close one of the loopholes.

Report | MASSPIRG Education Fund | Tax

Picking Up the Tab 2015

Every year, corporations and wealthy individuals use complicated gimmicks to shift U.S. earnings to subsidiaries in offshore tax havens – countries with minimal or no taxes – in order to reduce their federal and state income tax liabilities by billions of dollars. While tax haven abusers benefit from America’s markets, public infrastructure, educated workforce, security and rule of law – all supported in one way or another by tax dollars – they continue to avoid paying for these benefits. 

Report | U.S. PIRG Education Fund | Budget, Tax

Picking Up The Tab 2015: Small Businesses Pay the Price for Offshore Tax Havens

Every year, corporations and wealthy individuals use complicated gimmicks to shift U.S. earnings to subsidiaries in offshore tax havens – countries with minimal or no taxes – in order to reduce their federal and state income tax liabilities by billions of dollars. While tax haven abusers benefit from America’s markets, public infrastructure, educated workforce, security and rule of law – all supported in one way or another by tax dollars – they continue to avoid paying for these benefits.

Small business owners are hit twice by the effects of tax dodging by large multinational corporations. Since they almost never have the kind of subsidiaries in the Cayman Islands or armies of tax lawyers and accountants to exploit tax haven loopholes that their multinational rivals do, small businesses are routinely placed at a competitive disadvantage in the market place. In addition, small businesses, like average taxpayers, end up picking up the tab for offshore tax avoidance in the form of higher taxes, cuts to public services, or increases to the federal debt.

This study examines the potential impact of corporate tax dodging on America’s small businesses.

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