Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year.
Details how America’s largest corporations are using offshore tax haven affiliates to avoid paying federal taxes, and policies to address the problem. U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or individuals when it comes to the tax code.
Source: Offshore Shell Games Report 2017
Rather than paying their fair share, many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid
an estimated $90 billion in federal income taxes each year.