More than70 percent of Fortune 500 companies maintain subsidiaries in offshore tax havens as of 2013, according to “Offshore Shell Games,” a report released May 5 by the U.S.
More than70 percent of Fortune 500 companies maintainsubsidiaries in offshore tax havensas of 2013, according to “Offshore Shell Games,” a report released May 5 by the U.S. PIRG Education Fund and Citizens For Tax Justice, two left-leaning activist groups. These organizations reported almost $2 trillion in profits held offshore, with the 30 largest accounting for 62 percent, or $1.2 trillion.
“Our tax code is broken, and it’s hurting the public,” said Dan Smith, Tax and Budget advocate for the U.S. PIRG Education Fund and a co-author of the report. “We’ve made it too easy for American multinationals to dodge taxes by setting up shell companies in tax havens. We simply shouldn’t allow companies that use American roads, and benefit from America’s education system and large consumer market, to take a free ride at the expense of the rest of us.”
The U.S. has not made significant changes to its tax code since 1986, according to Reuters. As a result, there are a number of loopholes present that can be used by individuals, families and corporations. Large businesses regularly defend their tax practices as legal and in the best interest of shareholders. However, recent financial troubles experienced by major western governments and increasingly aggressive tax-minimization strategies have given rise to a backlash of public opinion.
“The loopholes in America’s corporate tax have grown so outrageous that our policymakers should be embarrassed,” said Steve Wamhoff, CTJ legislative director. “The data in this report demonstrate that a huge portion of the supposedly ‘offshore’ profits are likely to be U.S. profits that are manipulated so that they appear to be earned in countries like Bermuda or the Cayman Islands where they won’t be taxed. Policymakers should close the loopholes that make this manipulation possible.”
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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