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abusive transfer pricing: accounting “con” …

abusive transfer pricing: accounting “con” …

Heather A. Lowe of the GFI (Global Financial Integrity, a research and advocacy organization in Washington, DC) wrote an article in the Huffington Post about creative accounting loopholes that allow:

quote<<

one unnamed, multinational American tech company generated up to 55 percent of its revenue within the United States while only reporting that 10 percent of its pre-tax income was generated domestically — reducing its tax bill and increasing its net profits. In fact, abusive transfer pricing enabled Google to avoid $3.1 billion in taxes from 2007 to 2009 and enabled Pfizer to dodge roughly $1 billion in taxes in 2009 according to Bloomberg News.

>> unquote

 

That’s a very strange system.  So, the Tax codes are complicated *on purpose*, and Public Laws affecting taxation are worse than cryptic crossword puzzles.  The US is not alone in this; but just to say, IRS and Tax code is all collated under United States Code  : Title 26 – INTERNAL REVENUE CODE.

If you finish reading that, please drop me a note 🙂

http://www.law.cornell.edu/uscode/text/26.

100 chapters … sections with numbers in the 9000s … >>

TITLE 26 / Subtitle K / CHAPTER 100 / Subchapter C / § 9834 

[the end]

US is not alone, tax heaven also in UK ! and Cayman!

 

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Written by meditationatae

January 5, 2013 at 4:31 am

Posted in History

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