The Four Biggest US Tech Companies Hold $124 Billion In US Treasury Debt
Thomson Reuters
The finding means Apple Inc, Microsoft Corp, Google Inc and Cisco Systems Inc hold a large proportion of the $254.9 billion held in their foreign subsidiaries in U.S. Treasuries, according to securities filings reviewed by the London-based BIJ, a not-for-profit news organization.
Bringing the money home would trigger a tax bill, so the companies keep it offshore, partly to fund foreign expansion but also, executives say, to avoid a tax hit.
Democratic party Senator Carl Levin, who has campaigned for years against tax avoidance, was quoted saying by the BIJ that if U.S. corporations invested offshore funds in U.S. government debt, this income should face U.S. taxes.
"Those funds ought to be treated as having been repatriated and subject to U.S. tax," Levin said.
Corporations including Apple have lobbied for changes so they would not have to pay U.S. tax on income earned outside the United States and brought home. Many other countries, including Britain, only tax income earned within their borders, though some international companies have been accused of reducing their bill via sophisticated offshore accounting arrangements.
Some U.S. companies say a "territorial" type of tax system would avoid double taxation and ensure all businesses compete on equal terms. Tax campaigners say it would encourage companies to shift profits overseas.
Google said it responded to tax incentives offered by governments while following tax rules in every country where it operates. The other companies declined comment, but have previously said they pay all the tax they should.
(Reporting by Tom Bergin; Editing by David Holmes)
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas