Offshore Tax Loopholes

Written on: October 23, 2017

A couple of years ago, we lobbied in DC with Jubilee USA advocating for legislative reform that would require states to collect information on the “beneficial ownership” of companies incorporated within their borders. Anyone setting up a business would have to fill out paper work with the name of the beneficiary. It sound so innocuous, but it has the power for:

• law enforcement to track illegal businesses,
• human rights organizations to track trafficking and
• the IRS to lay claim to taxes.

So the ramifications are extensive as is the impact on the proposed tax reform and federal budget.

We hope you find the report from FACT informative and connected to our support of the Earth Charter, specifically:

Principle III Social and Economic Justice: 

Require multinational corporations and international financial organizations to act transparently in the public good, and hold them accountable for the consequences of their activities.

Pace e bene, Sister Diane

FOR IMMEDIATE RELEASE
OCTOBER 17, 2017

New Study Highlights Danger of Near 0% Tax Rate for Profits Booked Offshore

ITEP/PIRG Report Reveals at Least 366 Corporations — 73 Percent — in the Fortune 500 Operate One or More Subsidiaries in Tax Haven Countries

WASHINGTON, D.C. — A new study released highlights the widespread use of offshore tax haven loopholes by large multinational companies.  The study highlights the danger of congressional proposals to exempt profits booked offshore from taxation, according to the Financial Accountability and Corporate Transparency Coalition (FACT Coalition).  Titled “Offshore Shell Games 2017: The Use of Offshore Tax Havens by Fortune 500 Companies,” (link) the report was jointly published by the Institute on Taxation and Economic Policy (ITEP) and the U.S. PIRG Education Fund — both members of the FACT Coalition.

Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:

“This study reveals that large multinationals currently have $2.6 trillion booked offshore on which they are avoiding a staggering $752 billion in U.S. taxes.

“As Congress considers proposals to institute a near zero percent tax rate on profits booked offshore by multinational corporations, the findings in this report should give policymakers pause. The study shows that today’s flawed tax system allows for gaming on a grand scale.  But we shouldn’t make it even worse.

“Proposals exempting profits booked to offshore tax havens from taxation could well mean that these companies never pay U.S. income taxes again.  These tax giveaways hurt middle-class taxpayers who will pay either in higher taxes, larger deficits, or cuts to services they use.  That’s why, earlier this month, more than 100 organizations came out against plans by the White House and congressional leadership to open the largest offshore tax loophole in U.S. history.”

This entry was posted in With a Heart for Justice and tagged: 'beneficial ownership', Alphabet (Google), Apple, Citigroup, Congress, Earth Charter, Economic Justice, Federal Budget, Fortune 500, GoldmanSachs, Human Trafficking, illegal businesses, IRS, Jubilee USA, Nike, Offshore tax loopholes, Pepsi Co, Pfizer, reform, social justice, Tax Haven, Taxes, Walmart