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View Diary: $100 Billion Tax Fraud: Why isn't this news? (50 comments)

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  •  Here's an article (2+ / 0-)
    Recommended by:
    Mz Kleen, davewill

    from January which was written after Obama brought up this issue in the January 5th New Hampshire debates.

    •  And from the Cayman Net News (3+ / 0-)
      Recommended by:
      ohwilleke, Oregon guy, Mz Kleen

      via TaxJusticel.Org:

      In virtually every speech or debate Mr Obama refers to Ugland House on South Church Street in Grand Cayman, a building that houses thousands of corporations, calling it "the biggest tax scam on record."

      To Mr Obama, it is nothing more than a haven for thieves and cheats.

      "You've got a building in the Cayman Islands that supposedly houses 12,000 corporations," he said during a January 5, 2008, debate in New Hampshire. "That's either the biggest building or the biggest tax scam on record."

      Indeed, many thousands of companies, many of them subsidiaries of well-known US corporations, are registered at Ugland House and other offices in the Cayman Islands.

      They include Coca-Cola, Procter & Gamble, General Motors, Intel, FedEx and Sprint.

      Of course, it is easy to focus on the Cayman Islands, with its absence of corporate tax, or any direct taxation for that matter, as the principal culprit and lose sight of the underlying reality that it is the US tax code that makes it possible for such companies to use the Cayman Islands as a tax shelter in the first place.

      Mr Obama happens to be the co-sponsor of legislation that would crack down on offshore activities by US corporations and individuals. The Stop Tax Haven Abuse Act would target an estimated $100-billion annually, including $30-billion from corporations.
      According to published financial reports, Coca-Cola alone saved $500-million in US taxes in 2003 through foreign subsidiaries. Its Cayman company controls syrup-producing facilities in Ireland.

      We can be fairly certain that Mr Obama's declared attitude at this stage is likely to be mirrored in the approach to be taken by ‘President Obama'.

      •  Notably, I doubt Coke is up to shenanigans; (0+ / 0-)

        they probably have a legit reason for their offshore subsidiaries, a positive side effect of which is tax deferral.  The tough part is segregating the abusive schemes for the legitimate business plans.

        "[G]lobalization is...increasing the efficiency of resource allocation through stronger capital markets" - Barack Obama

        by burrow owl on Mon Feb 25, 2008 at 05:54:00 PM PST

        [ Parent ]

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