US Businesses Stash Billions Offshore

March 14, 2013 Tax HavensTaxation in USA

MoneyWASHINGTON D.C. – Some of biggest companies in the USA’s are holding billions of dollars in overseas accounts in an attempt to artificially reduce their profits and minimize their tax obligations.

In 2012 at least 92 US based Fortune 500 companies increased their reported offshore profit holdings by least USD 500 million each, according to a new report released earlier this week by the advocacy group Citizens for Tax Justice.

Collectively the profits shifted overseas by these companies grew by approximately USD 229 billion in last year alone.

It was noted that in 2012 the ten companies with the most significant increases to offshore holdings saw their overseas profits grow by a cumulative USD 106 billion, with Apple, Microsoft and Pfizer leading the way at USD 28.3 billion, USD 16 billion, and USD 10 billion respectively.

According to Citizens for Tax Justice, the behavior of these giants is not an isolated event in time, and the authors pointed to the previous four years, when at least 48 of the largest businesses in the USA increased their reported offshore profit by at least USD 3 billion each.

The Tax Justice claims that a significant portion of the offshore profits were actually earned in the USA, but were artificially shifted overseas to avoid taxation.

Photo by 401(K) 2013