Business Tax Case Study

It ends up putting our country farther into its trillions of dollars in debt. “Eight of the biggest U.S. technology companies added a combined $69 billion to their stockpiled offshore profits over the past year, even as some corporations in other industries felt pressure to bring cash back home (U.S)”. Eight of the top technology companies,including Microsoft, Apple and Google, now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas. “The amount of unrepatriated foreign profits reached $2.4 trillion, according to Citizens for Tax Justice, allowing companies to avoid up to $695 billion in taxes

But as we noted when we fact checked another of Obama's campaign statements— one from the 2010 midterm elections claiming then-House Republican leader John Boehner supported these deductions — there are no provisions in the tax code that specifically reward companies for building factories overseas or outsourcing jobs. There are, however, provisions that allow companies to avoid paying U.S. taxes on income generated by their foreign subsidiaries, at least until they bring those profits back to the United States. Both the president and legislator say these deferrals can encourage U.S.-based multinational companies to keep their foreign profits abroad and reinvest them in infrastructure overseas.”

With the advancements in the globalization of the economy, corporations are finding more ways to avoid the extraordinary tax rates set in place of The United States Of America. With the loss of revenue from large companies dodging taxes the government must make up for the loss by either raising taxes or changing the tax code. A recent company to avoid american taxes is Johnson Controls, a company that “…would not exist as it is today but for American taxpayers, who paid $80 billion in 2008…”(The Editorial Board). This use of American resources to get through tough times, and run to another county during an economic incline is an act that calls for reform in the American tax system. However congress has not passed any legislation to fix the

1. For the Tax year 2004, is SK eligible to switch from the accrual to cash method of accounting under Rev. Proc. 2001-10?

From a biblical perspective we see in 1 Samuel 12:1-4 Israel’s high regard for Samuel. He was a man who exuded integrity. Samuel said to all of Israel, “I have listened to everything you said to me and have set a king over you. Now you have a king as your leader. As for me, I am old and gray, and my sons are here with you. I have been your leader from my youth until this day. Here I stand. Testify against me in the presence of the Lord and his anointed. Whose ox have I taken? Whose donkey have I taken? Whom have I cheated? Whom have I oppressed? From whose hand have I accepted a bribe to make me shut my eyes? If I have done any of these, I will make it right.” “You have not cheated or oppressed us,” they replied. “You have not taken anything from anyone’s hand.”

Companies in the US are finding clever deceiving ways to get what they want. Many companies like Google are investing offshore to avoid American taxes. Others like the company Monsanto uses

Lowering the taxes of big corporations creates new and more jobs for people. Kellyanne Conway, Counselor of the President claims that “When our

While there are some key flaws to Donald Trump's tax plan, it must be noted that he is trying to use this new tax plan as a way to benefit the majority of America. An argument was brought up about how this would significantly benefit the rich, which it will, but why is this a bad thing? First off, allowing the wealthy to take their off shore money and put it back into the American economy for only 4% may seem bad, however, Trump's plan is giving them an opportunity that they would have never taken otherwise. To add, the United States had kept really high corporate taxes compared to that of other countries. As a consequence, companies decided to move jobs out of America (out-scouring) because running a business in America has become too expensive.

If you prepare your own taxes, what software do you use? How long does it take you?

Based on our learned and collected information from internet, we known different business organizations have different tax rate and policy. As we known, Hua and Lin decided to start a clothing business. In our team opinion, this company is classified as an limited liability company, which as an alternative to a general or limited partnership. First，this company has two person, an LLC has two or more members. The income of LLC is not taxed at the entity level but passes through to the member. The member of LLC only need to pay their personal income tax. While the LLC does not pay tax income. Compared with LLC, the closed corporate need to pay personal tax income and corporate tax income. This mean double tax. From this compare,we found the LLC has lower tax burden. So that, Hua and Lin choose the kind of LLC is very right.

This reason is important to me and my family because Since 1988, the average corporate-tax rate for 34 Organisation for Economic Co-operation and Development countries has fallen from 44 percent to 25 percent. Over that time, the U.S. rate actually increased. And this can cause my family and the families of others to leave their jobs because of the tax rate is slowly increasing so that causes their payment to be the same low payment as over the past years.And now i'm thinking what would be Donald Trump’s goal to stop companies or try to prevent more tax rates to

KPMG was one of the biggest accounting firms in the 90’s that with a lucrative end, would serve wealthy companies using forged revenues in order to avoid taxes. The accountants that worked for the firm were expected to meet certain quotas. Consequently, instead of trying to run an honest business they were trying to maximize the sales using all kinds of dishonest marketing approaches. KPMG employees used foreign banks as well as bogus law firm statements to preserve a legitimate business running. This accounting firm manipulated financial data of clients, costing the internal revenue service over 2.5 billion in lost tax revenue

The United States is in a recession; it has been facing some of the worse economic times since the Great Depression in the 1930’s. One option to fix the economy is to change the corporate tax rate. To lower it or to raise it, that is the question economists have been speculating. America's high corporate tax rate and worldwide system of taxation discourages U.S. companies from sending their foreign-source revenue home, which makes U.S. companies defenseless to foreign acquisition from the international opponents (Camp). Corporations and United States citizens have been fighting for a tax reform, which would hopefully help the American economy; either by lowering the corporate tax, or by raising the tax.

When people do not want to pay the high Chicago taxes the come to Indiana or the suburbs, but where do corporations go to make save their money from being taxed? They go to the countries with the lowest corporate tax rates which include Bermuda, The Cayman Islands, The Bahamas, and Ireland. Bermuda, The Bahamas, and The Cayman Islands have tax rates of 0%, while Ireland has a tax rate of 12.5% which is still significantly lower than most developed countries. Around 70 billion dollars every year are lost by the U.S. from these offshore tax shelter countries. The reason that these small islands choose to make such low tax rates is because they know they can attract the foreign money. They do not have many natural resources, so they make their money from vacationers and tax sheltering large corporations. Almost every large corporation in the United States, from Apple to Pfizer, relies on these islands to escape the taxes they would be paying in The United States. Although they do not actually have offices in these islands, in fact many only have a mailbox, the companies are able to claim taxes there because it is not illegal in the tax code. Also, the money never really makes its way to these small islands they only are there in a digital sense. Most of the products sold, knowledge and

International firms have many subsidiaries located in different countries of the world. These subsidiaries will be subject to tax levels as decided by the country in which they are located. If a subsidiary is located in a country where the corporate tax levied is high (eg USA- 35%, India - 30%) it has to pay high taxes compared to tax haven countries like Cayman island, Switzerland, UK and Singapore which has corporate tax levels at around 17%. So, it will be profitable for a firm to pool most of the profits