Jamesb101.com

commentary on Politics and a little bit of everything else

BDog on highflying Companies that know how to avoid the IRS and Taxes…..Legally!

They register parts of their businesses in other countries…..

Thus avoiding some of their tax liabilities in the United States…

Thus making them more profits…

And they would say leting them charge you and me less for their product..

Although it doesn’t seem at all fair to me……

It’s entirely legal……

Tyler Hurst swiped his debit card at a Walgreens pharmacy in central Phoenix and kicked off an international odyssey of corporate tax avoidance.

Hurst went home with an amber bottle of Lexapro, the world’s third-best selling antidepressant. The profits from his $99 purchase began a 9,400-mile journey that would lead across the Atlantic Ocean and more than halfway back again, to a grassy industrial park in Dublin, a glass skyscraper in Amsterdam and a law office in Bermuda surrounded by palm trees.

While Forest Laboratories Inc., the medicine’s maker, sells Lexapro only in the U.S., the voyage ensures most of its profits aren’t taxed there — and they face little tax anywhere else. Forest cut its U.S. tax bill by more than a third last year with a technique known as transfer pricing, a method that carves an estimated $60 billion a year from the U.S. Treasury as it combines tax planning and alchemy. (See an interactive graphic on Forest’s tax strategy here.)

Transfer pricing lets companies such as Forest, Oracle Corp., Eli Lilly & Co. and Pfizer Inc., legally avoid some income taxes by converting sales in one country to profits in another — on paper only, and often in places where they have few employees or actual sales.

After an economic bailout in which the U.S. government lent, spent or guaranteed as much as $12.8 trillion, the Obama administration faces a projected budget deficit of $1.5 trillion this year. In February, the administration said it would target some of the techniques companies use to shift profits offshore — part of a package intended to raise $12 billion a year over the coming decade.

More……..

Advertisements

May 15, 2010 - Posted by | Blogs, Breaking News, Counterpoints, Government, Law, Media, Other Things, PoliticalDog Calls, Politics, Taxes, The Economy, Travel, Updates | , , , ,

1 Comment »

  1. […] This post was mentioned on Twitter by James Finley. James Finley said: BDog on highflying Companies that know how to avoid the IRS and Taxes…..legally!: http://wp.me/pAL4p-2RT […]

    Pingback by Tweets that mention BDog on highflying Companies that know how to avoid the IRS and Taxes…..legally! « PoliticalDog101.com -- Topsy.com | May 15, 2010 | Reply


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: