US Companies Hide $2.4 Trillion Offshore
March 7, 2016 Taxation in USA
WASHINGTON D.C. – The biggest companies in the USA are hoarding trillions of dollars in offshore jurisdictions, depriving the USA of almost USD 700 billion in tax revenues.
Fortune 500 companies could pay up to USD 695 billion in taxes, if they repatriated their funds from low-tax jurisdictions to the USA, according to the results in a new report released late last week by the non-government organization Citizens for Tax Justice (CTJ).
Currently US companies repatriating funds from overseas are required to pay a tax of 35 percent, but receive a credit equal to the amount of tax already paid on the profits to a foreign government.
Currently only 55 of the largest 500 publically listed companies operating in the USA have disclosed the rate of tax that they would pay on the funds they hold offshore.
Based on the information provided by the disclosing companies, the tax revenues which could be collected if all funds were repatriated could be as high as USD 196 billion.
It is estimated that 303 of the largest 500 companies in the USA hold funds worth approximately USD 2.4 trillion in offshore jurisdictions.
If all the offshore funds were repatriated, the total collections could be as high as USD 695 billion.
Photo By: Emilian Robert Vicol