RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Excellent: $US1 trillion of United States corporate cash lies safely away from IRS in foreign countries Thu May 29, 2014 12:58 am | |
| A mind-blowing $US1 trillion ($1.07 trillion) of United States corporate cash lies trapped in foreign countries.
How to free it, put it to use or repay agitated shareholders, while avoiding the billions of dollars of taxes owed to the US government, is now a major headache for management and a top priority for boards.
First some background as to how $US1 trillion of US corporate cash, or around 60 per cent of the entire total US cash balance, has become stuck in tax-friendly jurisdictions like Ireland.
To take advantage of materially lower tax rates – Ireland's corporate tax rate is one third of that in the US – America's largest companies legally restructured their companies so the Intellectual Property, and therefore, the profits, flow to places with the lowest tax.
http://www.smh.com.au/business/world-business/us-companies-face-trilliondollar-cash-headache-20140528-394ba.html |
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