Tax

News Release | CALPIRG Education Fund | Tax

Government Agencies Allow Corporations to Write Off Billions in Federal Settlement Payments

A new study by California Public Interest Research Group Education Fund analyzes which federal agencies allow companies to write off out-of-court settlements as tax deductions and which agencies are transparent about these deals. The study found that five of the largest government agencies that sign settlement agreements with corporations rarely specify the tax status of the resulting payments. Billions of dollars are allowed to be written off as cost of doing business tax deductions. Additionally, the report found that major government agencies do not consistently disclose the details of corporate settlement agreements.

Report | CALPIRG Education Fund | Tax

Settling for a Lack of Accountability?

When large companies harm the public through fraud, financial scams, chemical spills, dangerous products or other misdeeds, they almost never just pay a fine or penalty, as ordinary people would. Instead, these companies negotiate out-of-court settlements that resolve the charges in return for stipulated payments or promised remedies. These agreements, made on behalf of the American people, are not subject to any transparency standards and companies often write them off as tax deductions claimed as necessary and ordinary costs of doing business.

Report | CALPIRG Education Fund and Citizens for Tax Justice | Tax

Offshore Shell Games 2015

U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or individuals when it comes to the tax code. Rather than paying their full share, many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year. Many of the worst offenders are headquartered in California. 

News Release | U.S. PIRG | Tax

Last week’s other big bank settlement also shifts burden to taxpayers

Goldman Sachs will be able to take a $420 million tax write off on the bank's FHFA settlement for its mortgage misdeeds. A similar settlement paid in 2010 to the SEC specifically prohibited such tax deductions.

News Release | U.S. PIRG | Tax

Bank of America settlement loophole creates at least $4 billion burden for taxpayers

 The Justice Department allows Bank of America to write off most of its legal settlement for mortgage abuses as a tax deduction, shifting at least $4 billion back onto taxpayers.

News Release | CALPIRG Education Fund | Tax

Study: 70% of Fortune 500 Companies Used Tax Havens in 2013

SACRAMENTO – Tax loopholes encouraged more than 70 percent of Fortune 500 companies – HP, Google, and Apple here in California – to maintain subsidiaries in offshore tax havens as of 2013, according to “Offshore Shell Games,” released today by CALPIRG Education Fund and Citizens for Tax Justice. Collectively, the companies reported booking nearly $2 trillion offshore for tax purposes, with just 30 companies accounting for 62 percent of the total, or $1.2 trillion.

Report | CALPIRG | Tax

Picking Up the Tab: Average Citizens and Small Businesses Pay the Price for Offshore Tax Havens

New report finds that corporate abuse of offshore tax havens is costing Californians billions of dollars, and individual taxpayers and smal business owners are the ones who end up footing th ebill

News Release | CALPIRG Education Fund | Tax

California Could Save $246 Million With Simple, Proven Method to Curb Offshore Tax Dodging, New Study Finds

Sacramento, January 30th – California taxpayers could save $246 million from a simple reform to crack down on offshore tax dodging, according to a new report released today by CALPIRG. The reform, which has already been proven effective in Montana and passed in Oregon, would require companies to treat profits booked to notorious tax havens as domestic taxable income.

Report | CALPIRG | Tax

Closing the Billion Dollar Loophole

Every year, corporations use complicated gimmicks to shift U.S. earnings to subsidiaries in offshore tax havens – countries with minimal or no taxes – in order to reduce their state and federal income tax liability by billions of dollars. Tax haven abusers benefit from America’s markets, public infrastructure, educated workforce, security and rule of law – all supported in one way or another by tax dollars. But they use tax havens to escape supporting these public structures and benefits. Ultimately, ordinary taxpayers end up picking up the tab, either in the form of higher taxes or cuts to public spending priorities.

News Release | CALPIRG | Tax

New Study: 82 of Top 100 Companies Used Tax Havens in 2012 Companies Hold $1.2 Trillion Offshore, Untaxed by U.S.

“These companies benefit from America’s infrastructure, educated workforce, security, and access to the largest consumer market in the world. They should not be able to use loopholes to get out of paying for it,” added Austin Price, Field Director with CALPIRG.

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