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Profit Shifting

All articles tagged with #profit shifting

business1 month ago•3 min saved

EU filing shows Microsoft's profits cluster in Ireland despite sparse local headcount

Microsoft’s EU disclosure breaks down Europe-wide pretax income and shows a stark concentration in Ireland (about 40% of pretax income with roughly 3% of global staff) while countries like Germany account for less than 0.5%. Excluding Ireland, Europe delivers under 2% of worldwide pretax earnings. The figures illustrate how tech firms route revenue through low‑tax subsidiaries even when most activity sits elsewhere, underscoring ongoing debates over profits vs. real activity amid accounting quirks, regulatory pressure, and US tax challenges faced by Microsoft.

via TechSpot|

#business #corporate-tax #eu-tax-disclosure

business3 years ago•8 min saved

"Uncovering Big Pharma's Tax Evasion Tactics"

Major US pharmaceutical companies are using legal loopholes to shift their profits from US sales to low-tax jurisdictions, allowing them to avoid paying billions in US taxes. Despite Americans paying the highest prices for medicines, these companies report minimal profits in the US while earning significant profits abroad. The offshore profit shifting is enabled by the US corporate tax code, which incentivizes the relocation of intellectual property and manufacturing to low-tax countries. The 2017 Trump corporate tax reform further exacerbated the problem. To address this issue, common-sense reforms such as implementing a minimum tax on overseas profits and limiting tax credits for research on drugs developed outside the US could help recapture tax revenues, promote domestic investment, and foster innovation in the US pharmaceutical industry.

via Business Insider|

#big-pharma #business #profit-shifting