Tech’s avoidance
The rights and wrongs of moving profits offshore to cut tax bills
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HAVING targeted wealthy individuals who stash money offshore, are America’s tax police about to go after deep-pocketed companies? Carl Levin hopes to make that happen. On September 20th the Senate subcommittee he chairs released a report and held a hearing highlighting tax avoidance by multinationals. The companies do this by shifting profits to havens with corporate-tax rates below America’s (where rates range up to 35%) and by using loopholes to bring some of that cash home without triggering a liability.
This article appeared in the Finance & economics section of the print edition under the headline “Tech’s avoidance”
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