Large U.S. companies improve their offshore profits by 15% last year to a record $ 1.9 trillion, to avoid massive tax the foreign profits, according to a new report.
The overseas earnings inventories have climbed by 70% over the past five years, the research firm audit analysis. In its report, the data covers the United States the largest companies in the Russell 3000 Index.
Multinational companies headquartered in the United States did not pay corporate income tax of foreign exchange earnings, as long as the income does not enter the United States. Accounting rules also allow the company to avoid income tax is recognized, if management intends to remain indefinitely re-invested overseas earnings.
"There is money in our country is being used in our economy it may be good, but at the moment we see it grow elsewhere, said:" Tang Huilun, General Counsel and audit analysis research director.
Conglomerate General Electric Company (GE.N) indefinitely re-invested overseas earnings of about $ 10.8 billion, while drugmaker Pfizer (PFE.N) is the next $ 73 billion, according to the Audit analysis.
The companies have been lobbying Congress a new law will allow them to foreign profits tax payable, or one-time "tax on overseas profits has little or no regular home.
Most Democrats oppose overseas profits tax holiday, citing studies have shown that former President George W. Bush enacted tax holidays and into the country to bring a profit, but the money has not been widely used in hiring or capital investment.
Some tax rights activists have long advocated the abolition of the laws of the tax deferral, the corporate campus profits offshore tax-free, but the proposal has made little political progress.
Some companies are already in the U.S. Treasury market, while overseas profits home to borrow money.
Computer giant Apple Inc (AAPL.O: Quote) proposed last week's record of $ 1.7 billion U.S. bond sales to help fund plans to pay back the money to shareholders. Bond sales, Apple has expired, if it is with some U.S. dollars $ 10.2 billion of cash in foreign currency, rather than evade taxes.
The world's largest software company, Microsoft (MSFT.O: Quote, Profile, Research), sold $ 270 million value of the bond market last month. It has about $ 7.4 billion in cash and short-term investments, but most are held outside the United States.
 
 



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