Tax is one thing that affect income of everyone and every business. Since it varies from country to country, several large companies in United States resorted to keeping some of their money offshore to avoid taxes. According to the study done recently, some of the big firms in the U.S. have their money in other countries, totaling to $2.1 trillion in accumulated profits.
Two non-profit groups conducted a study and found out that many companies in the U.S. have been sending money outside the country because of high taxes in the U.S. So far, it’s reported that the amount kept outside the country, from all the companies collectively, total to $2.1 trillion, that’s if the profits accumulated overseas are included. Apple Inc. is the U.S. company with the highest amount outside the country, totaling to $181.1 billion. If Apple brings its money back from overseas to the country, it will have to lose approximately $59.2 billion to the U.S. taxes. General Electric is the second company in keeping a huge amount of money overseas. It has $119 billion offshore, while Microsoft ii the third, having $108.3 billion.
Quite large percentage of 500 fortune companies has its money outside U.S. to save the tax expenses. “At least 358 companies, nearly 72 percent of the Fortune 500, operate subsidiaries in tax haven jurisdictions as of the end of 2014,” the study said. “All told these 358 companies maintain at least 7,622 tax haven subsidiaries.” The study reported.
It must be tougher for the businesses in the U.S. when it comes to paying taxes. The big companies got the solution: sending their money overseas. As long as they are keeping huge amount of money outside, they are saving themselves from paying high taxes, hence having advantage of growing their net worth.