Tax `Shenanigans’ Turn U.S. Sales to Foreign Income With Billions Offshore
July 23rd, 2010
Bloomberg
A U.S. tech company identified only by the pseudonym “Delta” generated as much as 55 percent of its revenue domestically while reporting to shareholders that only 10 percent of its pretax income came from U.S. operations, according to a report presented to the House Ways and Means Committee.
By attributing more earnings to countries with lower tax rates, including the Netherlands and Singapore, “Delta” cut its worldwide average tax rate to less than half the 35 percent rate in the U.S., said the report by the Joint Committee on Taxation, presented yesterday.