NPR: How Offshore Tax Havens Save Companies Billions

[Shallah Kali]

http://www.npr.org/2011/03/17/134619750/how-offshore-tax-havens-save-companies-billions

On today's Fresh Air, Bloomberg News reporter Jesse Drucker, who has written extensively about corporate tax-dodging, explains how companies like Google, Pfizer, Lilly, Oracle, Facebook and Microsoft have managed to reduce their tax rates by hundreds of millions — and in some cases, billions — of dollars by taking advantage of offshore tax havens.

In October, Drucker reported that Google had saved $3.1 billion in taxes in the past three years by shifting the majority of its foreign profits into accounts in Ireland, the Netherlands and Bermuda using financial techniques called "the Dutch Sandwich" and "the Double Irish" arrangement. Basically, he says, Google credited its Irish office with the majority of its non-U.S. sales revenue — and then shuttled that money through various subsidiaries located in Ireland and other countries to save billions in taxes.

"You have an Irish operating company out there selling ads — they actually have real employees in Dublin," he explains. "They make payments to a Dutch subsidiary with no employees, which in turn makes payments to a Bermuda-headquartered Irish company with no employees. And the result of all of this is that it all helps to cut about $3 billion in Google's income taxes in the last three years."

snip

"They're a company that does almost 100 percent of its sales here in the U.S., they have almost 100 percent of their employees in the U.S., they're headquartered in New York City and yet the majority of their profits show up overseas, most of them attributed to a mailbox in Bermuda," Drucker says. "An economist at Reed College estimated that the U.S. is losing $60 billion a year in federal tax revenue , but she's actually in the process now of revising that estimate and has arrived at a figure closer to $90 billion."

More at the link: http://www.npr.org/2011/03/17/134619750/how-offshore-tax-havens-save-companies-billions

[DeSwiss]

1. K&R

- How's this for a partial listing???

Foreign companies established in this country. > Cayman Islands >

Foreign plants >

Aerospace & defense: Airbus Industrie SAS, United Technologies Corp.,

Agriculture: ADM (Archer Daniels Midland Co.),

Food: Bunge Ltd, General Mills Inc., Parmalat Finanziaria, PepsiCo Inc., Procter & Gamble, Co., Sara Lee Corp.,

Insurance: Aon Corp., Mony Group Inc., Reliastar Financial, Travelers Casualty Property,

Automotive & transport: Cooper Tire & Rubber Co., Ford Motor Co., General Motors Corp., Lear Corp., TRW Inc.,

Banking: ABN Amro Holding NV, AIB (Allied Irish Bank), American Express Co., Anglo-Irish Bank plc, Aozora Bank ex-Nippon Credit Bank, Arab Bank plc., Asahi Bank Ltd., ASB Bank Ltd., Banc Sabadell, Banca Commerciale Italiana, Banca di Roma, Banca Unione di Credito, Banco BMC, Banco Boavista SA, Banco Bradesco SA, Banco Colpatria, Banco Comafi, Banco Comercial Portugues SA, Banco de Credito Nacional, Banco de Galicia y Buenos Aires SA, Banco de la Nacion Argentina, Banco de la Provincia de Buenos Aires, Banco Dibens, Banco do Brasil, Banco Espirito Santo, Banco Finantia, Banco Frances SA, Banco Inverlat, Banco Itau SA, Banco Pinto & Sotto Mayor SA, Banco Popular Espanol SA, Banco Real, Banco Rio de la Plata SA, Banco Santander ex-BSCH, Banco Totta e Acores, Banco Wiese, Bancomext (Banco Nacional de Comercio Exterior), Banespa (Banco do Estado de Sao Paulo), Banesto, Bank Austria AG, Bank Dagang Nasional, Bank Hapoalim, Bank Leumi le-Israel, Bank Mandiri, Bank of America Corp., Bank of Ayudhya, Bank of Bermuda, Bank of Butterfield & Son Ltd, Bank of China, Bank of India, Bank of New York Co., Bank of Nova Scotia, Bank of Tokyo - Mitsubishi, Bank Rakyat, Bankinter SA, Banorte Grupo Financiero, Banpais (Banco del Pais), Banque de Montreal, Banque Multi Commerciale, Barclays Plc, Bayerische Landesbank Girozentrale, BBV (Banco Bilbao Vizcaya), BBVA (Banco Bilbao Vizcaya Argentaria), BBVA Bancomer, BCCI (Bank of Credit and Commerce International), BCV Banque Cantonale Vaudoise, BFC Banque Financière de la Cité, BLADEX (Banco Latinoamericano de Exportaciones), BNP (Banque Nationale de Paris), BNP Paribas, BPI (Banco Portugues do Investimento), Caixa Geral de Depositos, Chase Manhattan Corp., CIBC (Canadian Imperial Bank of Commerce), CIC (Crédit Industriel et Commercial), CITCO Banking Corp N.V., Citigroup Inc., Commercial Bank International, Commerzbank AG, CSFB Credit Suisse First Boston, Dai-Ichi Kangyo Bank, Den Norske Bank, Deutsche Bank AG, Discount Bank & Trust Co, Donaldson Lufkin & Jenrette, Dresdner Bank AG, Dundee Bancorp, Finibanco SA, First Union Corp., Fortis NV, Fuji Bank, Goldman Sachs Group Inc., Habib Bank, HSBC Holdings (Hong-Kong & Shangai Banking Corp), Indosuez, ING Groep, Israel Discount Bank Ltd, JP Morgan & Co., JP Morgan Chase & Co., Landesbank Hessen-Thuringen, LCL Le Crédit Lyonnais, Lehman Brothers Holdings Inc., Mellon Financial Corp., Merrill Lynch & Co., Mitsui Trust & Banking, Morgan Stanley, NatWest (National Westminster Bank), Nomura Securities, Nordic Baltic Holding AB, Pan Indonesian Bank, Royal Bank of Canada, Sakura Bank Ltd., Salomon Brothers, Sanwa Bank, Schwab Charles Corp., Société Générale, Sumitomo Bank, Suntrust Bank Inc., Swedbank, Toronto Dominion Bank, UBS (Union de Banques Suisses), Unibanco, Unicredito Italiano, Unidanmark, Wachovia Corp., Wells Fargo & Co., WestLB, Westpac Bank,

Wood & paper products: Smurfit Kappa plc,

Beverages: Coca Cola Co.,

Chemicals: Clorox Co, Dow Chemical, Eastman Chemical Co, Great Lakes Chemical Corp, PerkinElmer Inc., Raychem Corp., Sealed Air Corp, Sherwin-Williams Co, Spectrum Brands Corp ex-Raoyvac, Warner Lambert Co.,

Consulting: Bearing Point ex- Arthur Andersen, Deloitte Touche Tohmatsu, Grant Thornton International, KPMG Consulting, Inc, KPMG International, PriceWaterhouseCoopers,

Construction: AMEC plc., Fluor Corp.,

Cosmetics: Colgate-Palmolive Co., Gillette Co., Revlon, Inc.,

Retail: Wal-Mart Stores,

Conglomerate: Fortune Brands,

Appliance: Helen of Troy Ltd.,

Electronics: Agilent Technologies Inc., Celestica Inc., Conexant Systems, Inc, Flextronics International Ltd, Great Wall Electronics International Ltd., Intel Corp., Jabil Circuit, Inc, LSI Logic Corp, Medtronic Inc., Palm, Inc., SanDisk Corp, THQ, Inc, Videocon Industries Ltd,

Packaging: Ball Corp.,

Energy & water: AES (Allied Energy Systems) Corp., Amerada Hess Corp, Apache Corp, Cinergy, CMS Energy Corp., Conoco, Cooper Cameron Corp, El Paso Corp, Enron Corp., Exxon Mobil Corp., Florida Power & Light, Halliburton Co., Hercules Offshore Inc., Marathon Oil Group, NRG Energy Corp., PG&E (Pacific Gas & Electric) Corp., Phillips Petroleum Co., Weatherford International, Inc, Williams Companies Inc.,
Equipment: Baker Hughes Inc, Cadence Design System Inc., Caterpillar Inc., ITT Industries Corp., Lifetime Brands Inc, McCormick & Co., The Cooper Companies,

Telecommunications equipment: Comverse Technology, Inc,

Computer hardware: 3Com Corp, Hewlett-Packard Co., Quantum Corp., Western Digital, Corp.,

Holding: IFI (Istituto Finanziario Industriale Spa),

Lodging: Marriott International Inc.,

Gaming: Las Vegas Sands Corp.,

Leisure: Toys "R" Us Inc.,

Media: USA Networks, Inc, Viacom Inc.,

Pharmaceuticals: Becton Dickinson & Co., Bristol Myers Squibb Co., Chattem Inc., Parke-Davis, Serono SA,

Postal services: FedEx Corp., UPS (United Parcel Service),

Advertising: Clear Channel Outdoor, Omnicom Group Inc.,

Health care: Allergan,

Security services: DynCorp,

Telecommunications services: Bellsouth Corp., MCI Inc., Sprint Nextel,

Transportation services: AutoNation Inc., SABRE Holding Corp,

Environmental services: Waste Management Inc.,

Financial services: AmeriTrade Holding Corp, Arthur J. Gallagher & Co, Citigroup Global Markets ex. Salomon Smith Barney, Dexia, E*Trade Financial Corp, ESFG (Espirito Santo Financial Group), Fleet Financial Group Inc., Investcorp S.A, Julius Baer, Marsh & McLennan Companies, Mercury Asset Management, Novastar Financial Inc, Schroder & Co., State Street Corp.,

Computer services: Adobe Systems, Inc., BMC Software Inc., Oracle Corp., Peoplesoft Inc.,

Tobacco: Altria ex-Philip Morris Co.,

Tourism: Royal Caribbean Cruises Ltd,

Apparel: Jones Apparel Group Inc., Wolverine World Wide,


http://www.transnationale.org/countries/cymp.php">LINK

[Shallah Kali]

2. Ugland House: Nearly 19,000 companies call this home in the Cayman Islands

Businesses & Investors Against Tax Haven Abuse
http://businessagainsttaxhavens.org/


There is no justification for tax avoidance and evasion through offshore tax havens. Everyone needs to pay their fair share to keep America moving forward. Tax dodging deprives our nation of revenue needed to maintain and modernize the infrastructure and services underpinning a strong economy. An estimated $37-60 billion or more in tax revenue is lost every year. Our economic progress is undermined when companies are rewarded for financial manipulation rather than innovation and productive investment.

Offshore tax havens provide cover for banks, hedge funds and corporations to shift taxable income from the United States to tax havens for the sole purpose of escaping taxation. Tax haven secrecy allows wealthy Americans to hide assets, helps companies manipulate their finances, and fosters the casino economy. Offshore tax havens reward companies and individuals who offload taxes to responsible businesses and households.

Through this campaign, we are mobilizing business people and investors who are committed to supporting a level playing field by stopping tax haven abuse. Passing strong legislation to end tax haven abuse will show we are serious about taxation that is transparent, fair and responsible. It is an important step in ending the irresponsible speculation and financial manipulation putting our whole economy at risk.

Business people and investors have a crucial voice in this debate. Washington has been hearing mostly from business lobbyists opposed to strong legislation to stop tax haven abuse. We will amplify the voices of business people and investors asking the President and Congress to strengthen our economy by enacting tough legislation to end tax haven abuse.

[northoftheborder]

4. Why doesn't someone step up on a soapbox with this kind of information???????

Such as, President Obama?????????????? Could he afford to do that, or would he buried by money spent against him?

[Shallah Kali]

5. People are making their own soapboxes - Meet US Uncut

I am assuing each q & a = one paragraph. if anyone disagrees I will remove the Q s...

http://www.thenation.com/blog/159270/meet-us-uncut

Q: What is US Uncut?

A: US Uncut is an anti–tax dodging movement. According to the group, they are “about taking action against unnecessary and unfair cuts to public services across the US.” They believe the country isn’t broke, but rather the elite and wealthy are permitted to play by a different set of rules that permits them to shelter their revenue in foreign tax havens and skirt other taxes.

Q: Why all the Bank of America hate?

A: In 2009, Bank of America didn’t pay a single cent in federal income taxes. Other corporate offenders include Citigroup, Boeing, Exxon, Wells Fargo and General Electric. In fact, all kinds of massively wealthy corporations pay very little, or no, taxes at all. Additionally, Bank of America received $20 billion in TARP cash AKA taxpayer money, which is why US Uncut views BoA’s relationship with citizens as being parasitic. The giant bank sucks taxpayers dry, but then refuses to contribute back to the society that facilitated its lavish profits.

Q: Doesn't the United States have a very high corporate tax rate already?

A: Conservatives often cite the fact that America's corporate tax rate is 35 percent, making it higher than the average of other industrial countries. However, this doesn't take into account tax-evading practices. The S&P 500 is home to 115 companies that received more in credits than they pay out.

Q: Is there a US Uncut chapter by me?

A: Find out at the official website: http://www.usuncut.org/

[The Wizard]

9. How many of those 19,000

are dummy companies laundering money from lobbyists to our law makers?

[drm604]

3. K&R

This report is one of the reasons they want to kill NPR.

[rurallib]

6. K& R and book marked.

Will do what I can to spread the word.

[DavidDvorkin]

7. The solution is obvious:

Defund NPR!

[jwirr]

8. What needs to be done with something like this is the same thing

that the rwers do with all those little blurbs we get from them being mass mailed all over the country. Just make it sound like a rw blurb.

[Shallah Kali]

10. Raising Their Ugland House: Cayman Islands Lobbies to Keep Haven Safe

http://reporting.sunlightfoundation.com/2009/raising-their-ugland-house-cayman-islands-lobbies-to-keep-haven

When President Barack Obama promised in May to raise an additional $210 billion in taxes a year by closing corporate loopholes and cracking down on individual tax cheats, he pointed to an address in the Cayman Islands listed by 12,000 corporations as the kind of abuse his proposals would shut down. "Either this is the largest building in the world or the largest tax scam in the world," the President said.

The line, recycled from his stump speech, was one that the Caribbean jurisdiction had responded to many times before. They have defended Ugland House, the building Obama referred to, and argued that the Cayman Islands are well regulated and transparent, to presidential candidates, executive branch officials, members of Congress and their staffs. In a revenue starved Washington, they're not the only tax haven lobbying.


Disclosures filed in 2008 show that six governments--Aruba, Bermuda, the Cayman Islands, the Isle of Man, Liechtenstein and the States of Jersey--and the Bank of the Netherlands Antilles employed U.S. lobbyists, paying a total of $2.3 million in fees. Those lobbyists had at least 222 contacts with members of Congress, their staff and executive branch officials in which they discussed tax laws, legislation aimed at tax havens like the Stop Tax Haven Abuse bill http://www.opencongress.org/bill/110-s681/show , or efforts to negotiate tax exchange information agreements with the United States and other countries, a review of data in Foreign Lobbying Influence Tracker (online at http://www.foreignlobbying.org) shows.

Signing or even committing to sign such agreements earns tax havens a stamp of approval from the Organization of Economic Cooperation and Development, an international body of developed countries that promotes policies that will spur development elsewhere. In 1998, the OECD launched an initiative aimed at shutting down tax havens; by 2001, the effort had fallen apart, and the body turned instead to encouraging havens to agree to exchange information on their offshore clients with foreign governments on request.

[RussBLib]

11. Another obvious solution that won't be implemented

Closing corporate loopholes, killing the tax break for offshoring jobs....these are simple solutions that will never be implemented, because our government just can't get past the money. Paralysis.

Our gov't truly is broken, and Obama is too weak to fix it.

[DCKit]

12. Geez, I thought money laundering was illegal.

Just goes to show what I know.

[BobbyBoring]

13. only

If you or I do it. Otherwise...................

[Shallah Kali]

14. they hired lobbiests, likely frm politicians or their spouses & staffs

to make sure it was legal.

At Least 130 Congressional Staffers Are Former Lobbyists, Study Finds

http://www.politicsdaily.com/2011/03/02/at-least-130-congressional-staffers-are-former-lobbyists-study/

[Blue_Tires]

15. kick