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!
