Monday, August 18, 2008
U.S. Congress reports a high incidence of Tax Evasion by?
Be my guest. I know extremists, Nativists, and Minuteman Members will still blamed Undocumented Immigrants but they are wrong.!!!!!!!! They should blame they own ignorance.
The tax dodging is a global phenomenon. It is not unique to Bangladesh only. Tax dodgers everywhere have transactions with on-shore banking. Billions of dollars are being stashed in banks outside one's own country.
A recent study in the US revealed that American and foreign companies do not pay taxes regularly. Two out of three companies in America did not pay any federal taxes from 1998 through 2005, Government Accountability Office (GAO), the investigative arm of the US Congress in a report said.
The report confirmed a lurking fear that the companies have not been scrupulous in paying federal taxes. The Congressional report did not identify the companies those who have been dodging taxes. The study covered 1.3 million companies of all sizes with a collective sale of $2.5 trillion. The foreign companies are included in the list. Those companies defaulted in larger number.
The tax evaders have used one loophole in the law. The companies are abusing tax laws by shifting income earned in higher-tax jurisdiction to overseas subsidiaries in low-tax jurisdiction. Senator Carl Levin of the Democratic party said, 'this report makes it clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States', the New York Times reported .
The government agencies do not have the exact data about how much money is being sent abroad to duck tax payment. The report said the larger corporations are more regular in paying taxes than the smaller ones.
Corporations with $250 million in assets and an annual turn over of $50 million are designated as the large corporations. One in four large corporations did not pay taxes regularly.
Corporations are levied to pay 36 per cent of their profits. They together owed the federal government $875 billion in tax payment. The corporations are allowed deduction because of write-offs, operating losses and tax credits. So they pay far less than what is projected. The largest corporations represent only one per cent of the total number of corporations but own more than 90 per cent of all corporations assets, an analyst said.
The Congressional study revealed that seven in ten foreign companies doing business in the US paid no taxes from 1998 through 2000 compared to six in ten American corporations