Oxfam publishes new report on tax avoidance practices of US corporate giants & calls on govt. to ensure firms pay fair share of taxes

TaxAvoidannce_Coins

On 14 April 2016, Oxfam International published a briefing that discusses how the American tax regime facilitates corporate tax avoidance practices.  The report estimates that the 50 biggest U.S. companies have hidden over 1 trillion dollars in overseas tax havens.  According to Oxfam, these illicit  tactics drain billions of dollars from the poorest countries in the world, contribute to soical inequality and hinder economic growth.

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Article
14 April 2016

US corporations have $1.4tn hidden in tax havens, claims Oxfam report

Author: Rob Davies, Guardian (UK)

US corporate giants such as Apple, Walmart and General Electric have stashed $1.4tn (£980bn) in tax havens, despite receiving trillions of dollars in taxpayer support, according to a report by anti-poverty charity Oxfam...The charity's analysis of the financial affairs of the 50 biggest US corporations comes amid intense scrutiny of tax havens following the leak of the Panama Papers...Oxfam estimates that tax avoidance by US corporations costs the world's largest economy some $111bn a year, but said it was also fuelling the global wealth divide by draining $100bn from the poorest countries. "Tax dodging practised by corporations and enabled by federal policymakers contributes to dangerous inequality that is undermining our social fabric and hindering economic growth," the report said...The charity called on the US government to pass the Stop Tax Haven Abuse Act, including a requirement for firms to report their tax contribution on a country-by-country basis...

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Report
14 April 2016

Broken at the Top: How America’s dysfunctional tax system costs billions in corporate tax dodging

Author: Oxfam America

Tax dodging by multinational corporations costs the US approximately $111 billion each year and saps an estimated $100 billion every year from poor countries, preventing crucial investments in education, healthcare, infrastructure, and other forms of poverty reduction. The harm done to Americans and people living in poor countries by corporate tax dodging are two sides of the same coin.  A new analysis by Oxfam of the 50 largest public US companies sheds light on just how rigged the tax system has become and shows that these same companies are using considerable political influence to push for even greater rewards in the forms of loans, bailouts and other government support. The analysis highlights the vast taxpayer-funded support the largest and most profitable US companies receive even as they engage in aggressive schemes to avoid paying taxes...

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Article
14 April 2016

Fifty biggest global US companies stash $1.3 trillion offshore

Author: Oxfam International

The 50 biggest US companies have more than a trillion dollars hidden offshore according to a new report published by Oxfam today...The companies, which include global brands such as Pfizer, Goldman Sachs, Dow Chemical, Chevron, Walmart, IBM, and Procter and Gamble, have more than 1,600 subsidiaries in tax havens. It's estimated that tax dodging by multinational companies costs countries around the world up to $240 billion annually...Silverman [Senior Tax Advisor at Oxfam] said, “When corporations don’t pay their fair share of taxes governments are forced to cut back on essential services or levy higher taxes on the rest of us. It’s time governments stopped pandering to big business and started working for the good of their citizens.” 'Broken at the Top' outlines a range of tricks, tools, and loopholes companies use to avoid paying tax.  One of the most common is profit shifting, where a company declares its profits in a low or zero tax jurisdictions instead of where they actually do business.  Oxfam is calling for governments to work together to ensure multinational companies and wealthy individuals pay their fair share of tax. This must include measures to ensure companies pay taxes where they do business and to stop the secrecy that enables companies and individuals to hide their money from tax authorities...

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