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Wed May 22, 2013, 12:38 PM

Google, Yahoo, Cisco under scrutiny after Apple tax avoidance hearing

Source: Bloomberg News

Large tech firms are coming under scrutiny over their tax avoidance measures, following the testimony of Apple executives to a US Senate Permanent Subcommittee. Google, Yahoo, Cisco, and others have been found to be using an assortment of tax loopholes and off-shoring in order to avoid paying governments in the US and Europe at least $100 billion.

Retired international tax attorney Michael Durst suggested to Bloomberg that the various world governments allowed multinationals to perform these tax maneuvers by funneling cash through other countries, with the result being "eroding public confidence in the fairness of tax systems in the United States and around the world."

Google uses the tax laws in Ireland and the Netherlands, termed a "Double Irish" and "Dutch Sandwich" by tax attorneys, to push cash into accounts located in Bermuda, a country without corporate income tax, in order to avoid around $2 billion in income tax each year. Yahoo uses a Netherlands-based accountant and stores funds in Mauritius and Switzerland, as well as operating an Irish subsidiary that is claimed to be a tax resident of the Cayman Islands. Cisco is alleged to have shifted half of its global profits to a unit in Switzerland, also avoiding billions in taxes.

In order to combat the "stateless income" that large companies have used to avoid taxes, a number of organizations are stepping in to work on the problem. Organization for Economic Cooperation and Development, at the request of a number of countries, is working on an "action plan" to prevent the loss of tax revenues via profit shifting, with a view to publishing it in July. The US Treasury Department listed a number of global tax loopholes that need to be closed, some of which have failed to close despite legal efforts.

Read more: http://www.electronista.com/articles/13/05/22/large.tech.companies.hide.funds.in.cayman.islands.switzerland/



Google Costs U.S. Billions With Stateless Income Strategy



http://www.bloomberg.com/news/2013-05-22/google-joins-apple-avoiding-taxes-with-stateless-income.html

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Reply Google, Yahoo, Cisco under scrutiny after Apple tax avoidance hearing (Original post)
onehandle May 2013 OP
still_one May 2013 #1
onehandle May 2013 #2
still_one May 2013 #4
onehandle May 2013 #5
SharonAnn May 2013 #8
LittleGirl May 2013 #3
amerciti001 May 2013 #6
Dreamer Tatum May 2013 #7

Response to onehandle (Original post)

Wed May 22, 2013, 12:41 PM

1. That is what bothered me they just singled out apple when a heck of a lot of

Companies do it

This has been going on for sometime, and if they have a problem instead of blaming the companies, change the law

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Response to still_one (Reply #1)

Wed May 22, 2013, 12:44 PM

2. A: Apple is the top tech company. But most importantly, B: Apple is not an oil company

Oil companies make Apple look like amateurs, tax avoidance-wise.

Apple lobbies about ten times less than Google and hundreds of times less than big oil, so that's another reason to go after them. They don't 'grease the wheels' enough for Congress's taste.

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Response to onehandle (Reply #2)

Wed May 22, 2013, 12:54 PM

4. They should change the law

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Response to still_one (Reply #4)

Wed May 22, 2013, 12:55 PM

5. Yep. It's your move, Congress. nt

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Response to still_one (Reply #1)

Wed May 22, 2013, 03:19 PM

8. I'm much more interested in getting GE to pay taxes. They paid nothing!

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Response to onehandle (Original post)

Wed May 22, 2013, 12:49 PM

3. what took them so long

I have long believed that Michael Moore is being unfairly targeted by the RW because he calls out these corporations and banks for not paying their fair share. Of course, lobbyists makes sure the tax code is written in their favor. Time to open the books of all of these multi-nationals.

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Response to onehandle (Original post)

Wed May 22, 2013, 03:03 PM

6. I thought Google's motto...

was "Don't Be Evil"
http://en.wikipedia.org/wiki/Don't_be_evil

Can't be no more "Evil" than skimming profits off the top, shifting them through tax havens and coming back with pocket change to show for US tax purposes. It's known as tax evasion, not paying your -fair- share of taxes as you should.
"Don't Be Evil"- because "Evil" is of the "Devil"

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Response to onehandle (Original post)

Wed May 22, 2013, 03:17 PM

7. Hey onehandle

Nowhere in your OP do I see words to the effect of, "It's LEGAL! Don't hate the PLAYER, hate the GAME!"

Whereas yesterday...well, enough said.

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