Cisco Systems excels at US tax avoidance- trimming $7 billion

[Ichingcarpenter]

Cisco Systems, one of the Triangle's biggest employers, has been able to trim $7 billion from its income tax bill since 2005 by booking roughly half its global profits at a Swiss subsidiary that employs just 100 people.



Bloomberg News laid out Cisco's tax-avoidance strategy, which experts say is legal, in a news article issued today. The Silicon Valley computer networking company has used the tax strategy to reduce its international tax rate to about 5 percent, Bloomberg reported.


Read more: http://blogs.newsobserver.com/business/report-cisco-systems-excels-at-tax-avoidance#ixzz1RulDf5Xu

[Ichingcarpenter]

1. Cisco wants a Tax Holiday

Now Cisco, the largest maker of networking equipment, wants to save even more -- by asking Congress to waive most federal taxes due when multinationals bring such offshore earnings home.

Chief Executive Officer John T. Chambers has led the charge for the tax holiday, which would be the second since 2004. He says it would encourage companies to “repatriate” as much as $1 trillion held abroad, spur domestic investment and create jobs.

http://www.bloomberg.com/news/2011-06-28/biggest-tax-avoiders-win-most-gaming-1-trillion-u-s-tax-break.html

[Ichingcarpenter]

2. Cisco helps Censorship in China

Cisco has been criticized for its involvement in censorship in the People's Republic of China.<37> According to author Ethan Gutmann, Cisco and other telecommunications equipment providers supplied the Chinese government with surveillance and Internet infrastructure equipment that is used to block Internet websites and track Chinese on-line activities.

Cisco says that it does not customize or develop specialized or unique filtering capabilities to enable governments to block access to information and that it sells the same equipment in China as it sells worldwide.<38>


Wired News had uncovered a leaked, confidential Cisco powerpoint presentation that details the commercial opportunities of the Golden Shield Project of Internet control.<39> In her article, journalist Sarah Stirland accuses Cisco of marketing its technology "specifically as a tool of repression.

http://en.wikipedia.org/wiki/Cisco_Systems#Censorship_in_China

[Ichingcarpenter]

3. Tax fraud In Brazil

On October 16, 2007, the Brazilian Federal Police and Brazilian Receita Federal (equivalent to the American IRS) under the "Persona Operation" uncovered an alleged tax fraud scheme employed by Cisco Systems since 2002 that exempted the company from paying over R$1.5 billion (US$824 million) in taxes.<40><41>

[Whoa_Nelly]

4. Every public school where I have taught uses Cisco Systems

More federal and state funds being used to support these crooks :mad: