Monday, September 14, 2015


This is one of the main reasons for Puerto Rico's economic collapse. With the blessing of Congress & the IRS, Puerto Rico is utilized as an offshore tax haven even though it is a  US Territory such as Alaska and Hawaii 
were once. MJR

Companies receiving taxpayer-backed subsidies avoid U.S. taxes
By Arthur Kane /Sept 14,2015
U.S. companies that benefited from more than $65 billion in taxpayer-backed loan guarantees have kept nearly $458 billion in profits offshore – avoiding paying billions in taxes to the government that helps them sell goods overseas, a investigation found.

Using an Export-Import Bank database, corporate records and a database from the Institute on Taxation and Economic Policy , identified 50 companies that exported billions using bank guarantees yet kept nearly half a trillion dollars offshore and away from the Internal Revenue Service.

The offshore proceeds of the companies benefiting from the bank, if taxed at the 35 percent corporate tax, would have contributed as much as $160 billion to U.S. coffers between 2012 and 2014.

ITEP executive director Matt Gardner said companies are using a loophole to shortchange the taxpayers.
Matt Gardner

EVASIVE MANEUVERS: Matt Gardner, executive director of the Institute on Taxation and Economic Policy, said companies shouldn’t evade U.S. taxes on overseas profits.

“It’s pretty ludicrous that the federal government would subsidize any company engaging in this kind of tax avoidance,” he said. “But it’s not surprising because the way the federal government and Congress spend money and conduct the tax system are basically disconnected. They don’t talk to each other.”

The bank mostly guarantees private lenders or government borrowers for foreign entities who want to buy products built in the United States.

The companies benefiting from the loan subsidy and keeping profits offshore didn’t see a connection.

General Electric and its subsidiaries exported nearly $5 billion worth of products since 2006 using Ex-Im guarantees, and in the past three years kept nearly $120 billion in profits offshore, corporate records and the ITEP database show. That’s more than twice as much deferred taxes as any other company that received Ex-Im guarantees, databases show.


Tuesday, September 8, 2015

Want to Avoid $600 Billion in Corporate Tax ? Go to Puerto Rico, USA

NOTE : You may also benefit from PR Law 22 which allows people to move to Puerto Rico, USA and not pay Puerto Rico State or Federal taxes. All this money generated in the island, and it doesn't enter the local or national economy!

Oh.. by the way...due to this and other similar bad decisions made by our political leaders, we puertoricans are requesting the US to allow us to qualify to apply for Bankruptcy. 

As a result, about 600,000 tax paying citizens have abandoned the island in the last few years and moved to another area in the US.


Fortune 500 Corporations Are Likely Avoiding $600 Billion in Corporate Tax Using Offshore Tax Havens

September 3, 2015
As Labor Day weekend approaches, a tanned and rested Congress is poised to return to Washington to hash out corporate tax changes. Much of the debate over corporate tax reform in Washington sensibly focuses on how to encourage Fortune 500 corporations to repatriate and pay U.S. taxes on the $2.1 trillion on profits they have declared to be “permanently reinvested” (and thereby free of U.S. taxes) overseas. But an overlooked fact in this debate is just how much tax companies have avoided by keeping these profits (on paper, at least) offshore. An April 2015 CTJ report estimates that Fortune 500 corporations likely have avoided $600 billion in federal income taxes on these offshore profits.
Corporations declaring their intention to keep profits permanently offshore are required to estimate, if possible, the amount of U.S. tax they would pay if they repatriate these profits. Most companies legally avoid complying with this rule simply by declaring that it is too complex to make the calculation. But CTJ went through corporate filings and found 57 Fortune 500 corporations do comply. (See table below for details) These companies estimate they would pay a 29 percent tax rate on repatriation. (Since the federal tax on repatriated profits is 35 percent minus any taxes already paid to foreign countries, this means these companies have paid an average tax rate of just 6 percent on these profits, an indicator that much of this income is being kept in low-rate tax havens.)
Hundreds of other companies with offshore cash fail to make this disclosure, so it is impossible to know precisely how much corporate income tax they have avoided on their offshore cash. But if these companies, which include notorious tax avoiders General Electric, Pfizer, Merck and IBM, owed tax at the same 29 percent average rate reported by disclosing companies, the unpaid tax bill on Fortune 500 corporations’ offshore cash would be $600 billion (that is, $2.1 trillion times 29 percent). Since almost two-thirds of Fortune 500 corporations disclose owning subsidiaries based in offshore tax havens, it seems likely that many of these corporations are sheltering their “permanently invested” profits in these havens.
Congressional tax writers are sensibly focusing their energies on finding a way to make companies with offshore cash pay at least some tax on these profits. But CTJ’s finding suggests that any plan that would bring in less than $600 billion would amount to yet another giveaway for corporate tax dodgers.  

57 Companies That Disclose Likely Tax Payments from Repatriation
 IncomeTax BillImpliedImplied Foreign
Company Name$ Millions$MillionsTax RateTax Rate
Hertz Global Holdings  $ 475 $ 18438.7%0.0%
Owens Corning 1,40051136.5%0.0%
Safeway 1806536.1%0.0%
Amgen 29,30010,50035.8%0.0%
Qualcomm 25,7009,10035.4%0.0%
Gilead Sciences 15,6005,50035.3%0.0%
Wynn Resorts 41214435.0%0.0%
Advanced Micro Devices 34912235.0%0.0%
AK Steel Holding 271034.9%0.1%
Biogen Idec 4,6001,55033.7%1.3%
Western Digital 8,2002,70032.9%2.1%
Apple 157,80051,61532.7%2.3%
Microsoft 92,90029,60031.9%3.1%
Nike 6,6002,10031.8%3.2%
PNC Financial Services Group 772431.2%3.8%
American Express 9,7003,00030.9%4.1%
Oracle 32,40010,00030.9%4.1%
FMC Technologies 1,61949230.4%4.6%
Baxter International 13,9004,20030.2%4.8%
NetApp 3,00089629.9%5.1%
Symantec 3,20091828.7%6.3%
Wells Fargo 1,80051328.5%6.5%
Group 1 Automotive 17528.1%6.9%
Jacobs Engineering Group 26728.0%7.0%
Leucadia National 1714626.9%8.1%
Clorox 1865026.9%8.1%
Citigroup 43,80011,60026.5%8.5%
Bank of America Corp. 17,2004,50026.2%8.8%
Air Products & Chemicals 5,8941,46624.9%10.1%
Northern Trust 1,10025523.2%11.8%
J.P. Morgan Chase & Co. 31,1007,00022.5%12.5%
Ameriprise Financial 1804022.2%12.8%
State Street Corp. 4,20087620.9%14.1%
Kraft Foods Group 57811820.4%14.6%
Bank of New York Mellon Corp. 6,0001,20020.0%15.0%
Walt Disney 1,90037719.8%15.2%
Lockheed Martin 2915518.9%16.1%
Goldman Sachs Group 24,8804,66018.7%16.3%
Graham Holdings 581118.3%16.7%
Viacom 2,50043817.5%17.5%
Tenneco 73712116.4%18.6%
Sherwin-Williams 4114.6%20.4%
Gap 5817212.4%22.6%
Cigna 1,80021812.1%22.9%
Morgan Stanley 7,36484111.4%23.6%
Murphy Oil 6,04568411.3%23.7%
Caesars Entertainment 1181311.0%24.0%
Paccar 4,1004009.8%25.2%
Anixter International 679527.6%27.4%
Laboratory Corp. of America 3026.4%28.6%
W.R. Berkley 5835.3%29.7%
Ford Motor 4,3002004.7%30.3%
PPG Industries 5,0002004.0%31.0%
Rock-Tenn 24093.7%31.3%
Timken 487102.1%32.9%
Occidental Petroleum 9,9001401.4%33.6%
Assurant 16310.6%34.4%
TOTAL  $ 590,926 $ 169,41228.7%6.3%
Source: CTJ analysis of companies' 10-Ks

Monday, September 7, 2015



Puerto Rico Control Board Discussion Simmers in Congress

by Jack Casey
Sept 6, 2015
"One source familiar with Puerto Rico discussions said that draft legislation is being floated to create a federal control board that would be charged with overseeing the commonwealth's finances. If introduced, that legislation would join two currently stagnant bills sponsored by Democrats that would extend Chapter 9 bankruptcy authority to Puerto Rico's municipalities."



Coalition of PR Bondholders Will Push for Financial Control Board

By Lynn Hume
Aug 27, 2015
"The 60 Plus Association announced on Thursday that it is forming a coalition of small holders of Puerto Rico bonds that will push for the creation of a financial control board and oppose bankruptcy legislation for the territory."


Lobbying on Puerto Rico Bankruptcy Bill More Than Doubles in 2Q

by Jack Casey
Aug 12, 2015
"Firms and groups spent about $490,000 lobbying either for or against the legislation in the second quarter, compared to $210,000 in the first quarter, according to, lobbying documents filed with Congress and interviews. An identical companion bill was introduced in the Senate on July 15 by Sens. Chuck Schumer, D-N.Y., and Richard Blumenthal, D-Conn., after the second quarter reporting period for lobbyists ended on June 30".

Wednesday, September 2, 2015

The Independent Commission for the Reform of International Corporate Taxation

Apple, Amazon, Google dubbed ‘worst offenders’ for use of tax loopholes