Big US firms hold $2.1tr overseas to avoid taxes
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WASHINGTON: The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid US taxes and would collectively owe an estimated $620 billion in US taxes if they repatriated the funds, according to a study released on Tuesday.
The study, by two left-leaning non-profit groups, found that nearly three-quarters of the firms on the Fortune 500 list of biggest American companies by gross revenue operate tax haven subsidiaries in countries like Bermuda, Ireland, Luxembourg and the Netherlands.
The Centre for Tax Justice and the US Public Interest Research Group Education Fund used the companies’ own financial filings with the Securities and Exchange Commission to reach their conclusions.
Apple was holding $181.1bn offshore, more than any other US company, and would owe an estimated $59.2bn in US taxes if it tried to bring the money back to the US.
The conglomerate General Electric has booked $119bn offshore in 18 tax havens, software firm Microsoft is holding $108.3bn in five tax haven subsidiaries and drug firm Pfizer is holding $74bn in 151 subsidiaries, the study said.
“At least 358 companies, nearly 72 per cent of the Fortune 500, operate subsidiaries in tax haven jurisdictions as of the end of 2014,” the study said.
Published in Dawn, October 7th, 2015
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