US corporate tax structure is a complex, messy and eternally in flux subject. Here’s the short version: Despite facing the second highest corporate tax rate (35%) on paper in the world, US corporations are able to reduce their tax liability through aggressive lobbying, transfer-pricing strategies, cost-sharing arrangements and other loopholes to some of the world’s lowest. General Electric (GE) has become the poster-child for tax-structuring excellence in the past few years (or wickedness, depending on how you look at it), but they’re not alone. The infographic below offers an overview of how they and other companies get out of paying over $60 billion to the IRS each year.
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- UK tax warning to multinationals (bbc.co.uk)
- Facebook the Latest to Win Big on Foreign Tax Loophole (joyoftaxlaw.com)