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Corporations may dodge billions in U.S. taxes through new loophole: experts
Source: Reuters
#BUSINESS NEWS JANUARY 11, 2018 / 6:42 PM / UPDATED 2 HOURS AGO
Corporations may dodge billions in U.S. taxes through new loophole: experts
David Morgan
5 MIN READ
WASHINGTON (Reuters) - A loophole in the new U.S. tax law could allow multinational corporations like Apple Inc to avoid paying billions of dollars in taxes on profits stashed overseas, according to experts.
Stemming from a Republican overhaul of international business taxes, the loophole involves the tax rates - 15.5 percent or 8 percent - that companies must pay on $2.6 trillion in profits they are holding abroad.
By manipulating their foreign cash positions, a determining factor under the new law, a U.S. multinational could potentially save money by shifting profits to the lower rate from the higher one, according to Stephen Shay, a senior lecturer at Harvard Law School.
The savings could amount to more than $4 billion in Apple’s case alone, he said.
-snip-
Corporations may dodge billions in U.S. taxes through new loophole: experts
David Morgan
5 MIN READ
WASHINGTON (Reuters) - A loophole in the new U.S. tax law could allow multinational corporations like Apple Inc to avoid paying billions of dollars in taxes on profits stashed overseas, according to experts.
Stemming from a Republican overhaul of international business taxes, the loophole involves the tax rates - 15.5 percent or 8 percent - that companies must pay on $2.6 trillion in profits they are holding abroad.
By manipulating their foreign cash positions, a determining factor under the new law, a U.S. multinational could potentially save money by shifting profits to the lower rate from the higher one, according to Stephen Shay, a senior lecturer at Harvard Law School.
The savings could amount to more than $4 billion in Apple’s case alone, he said.
-snip-
Read more: https://www.reuters.com/article/us-usa-tax-repatriation/corporations-may-dodge-billions-in-u-s-taxes-through-new-loophole-experts-idUSKBN1F035Q
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