Putin: “We Have to Think About How to Take this Money”

The Offshore games will end and with it will go the sleaze and corruption as Society then gets a chance.



Testosterone Pit
14 June 2014

“An epidemic of the world economy” is what Russian President Vladimir Putin called offshore jurisdictions that companies use to dodge taxes. American corporations were abusing this practice, and it affected continental Europe more than others, he said according to the state-owned official news and propaganda agency ITAR-TASS, just as the EU has started investigating these companies.

He was right. American companies are masters at this. Using various tricks and loopholes that Congress hand-tailored for them, they shift profits from the US and other countries to tiny low-tax jurisdictions, such as Bermuda, Ireland, or Singapore. A study found that over the past eight years, 14 American tech and pharma icons cut their average tax rate by a quarter and stashed nearly $500 billion into entities registered in low-tax offshore jurisdictions.

This moolah can be invested anywhere, even in the US. Apple accumulated $102 billion in sheltered profits in Irish subsidiaries by using a “complex web” of offshore mailbox companies, according to the Senate report that vivisected Apple’s tax-dodge strategies. One such subsidiary with no employees made $30 billion in profits and didn’t pay a dime in taxes to any government anywhere. That was the cash Apple refused to “repatriate” for its stock buybacks. But Apple didn’t have to repatriate it: the Irish mailbox subsidiaries kept the money in a bank in New York where it was managed by an Apple subsidiary in Reno, Nevada.

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