Overseas Cash and the Tax Games Multinationals Play
►http://www.globalpolicy.org/social-and-economic-policy/international-trade-and-development-1-57/transnational-corporations/51958-overseas-cash-and-the-tax-games-multinationals-play.html?itemid=
By Victor Fleischer
New York Times
October 3, 2012
Overseas Cash and the Tax Games Multinationals Play
( Global Taxes )
This article shows how US corporations use foreign subsidiaries in low-tax jurisdictions to minimize tax on their global income. The subsidiaries hold their profits overseas indefinitely without being taxed in the US as repatriated income. US parent companies abuse this legal “grey area” when they organize buy-backs, acquisitions and deployment of their working capital. To avoid taxes, corporations are deliberately organizing their finances in a complex, wasteful and abusive way, which seriously decreases oversight and transparency as well as emptying the national treasury.