US Companies Stashing Trillions Offshore
In 2015 the 50 biggest companies in the USA stashed an extra USD 200 billion offshore, using 143 newly created overseas subsidiaries, according to new information released by Oxfam International on February 12th.
Over the course of 2015 the top 50 companies made use of a total of 1 751 subsidiaries, which were primarily located in tax havens.
These subsidiaries were used to hold approximately USD 1.6 trillion in cash and profits.
It was also stated that the problem of offshore cash stashing was exacerbated by the large companies’ propensity for lobbying to receive tax breaks.
Oxfam estimated that for every USD 1 that the companies spend on lobbying, they receive an estimated USD 1 200 in tax breaks.
The problem of the entrenched tax avoidance will only be cemented further by the proposed tax reform being pushed by the Trump administration, which may see the large companies receive a windfall of up to USD 327 billion on the profits held offshore.