Tax Havens Case Study

2297 Words null Page
The biggest problem the U.S. government facing is that it does not know how much money taxpayers own in the Tax Havens. But, no country in this world can force other countries to change their regulations and laws, so the U.S. cannot ask another countries to change their laws to satisfy the U.S.. The effective way to limit the harmful effects is to ask other countries to share the information with the U.S. In May 2009; OECD removed Andorra, Liechtenstein and Monaco from the list of Uncooperative Tax Havens when these jurisdictions agreed to follow the standards of OECD, which include exchanging information. Tax Justice (2005) estimated the whole world might suffer 255 billion revenue cost of tax avoidance made by the individual. To understand …show more content…
People accuse Tim Cook as a tax avoider. He was not happy about this title; he said that he was willing to bring some money back to the States. But he thought it is not a reasonable thing to do that, because if he brings the money back to the US, he needs to pay almost 40 percent of tax on the income (Kim 2015). Now Apple keeps most of the money in the Ireland to deferral the US corporate tax. Apple pays only 12.5 percent of Ireland corporate tax rates instead of 35 percent US corporate tax rate …show more content…
firm paid is 35 percent. In fact, the corporate income tax in U.S. is approximately 40 percent, which includes 35 percent of federal corporate income tax rate and about 5 percent of state and local income tax rate, which depends on which state the corporation conducts business. According to Tax Foundation, the top three countries where has the highest marginal corporate tax rate among 173 countries are the United Arab Emirates, Chad and United States. And U.S also has the highest corporate tax rate in OECD. The average corporate tax rate in the world is 22.9 percent (Pomerleau). Even though there is no agreed definition of Tax Havens now, people normally view low tax rate countries as Tax Havens. Many people believe that because U.S. has such high corporate income tax rate, that is why U.S. companies transfer their companies or assets to Tax Havens. However, is the 35 percent of corporate tax rate the real reason that force U.S. corporation moving to Tax

Related Documents