posted on Feb, 27 2011 @ 02:27 AM
reply to post by ayoss
Most of that is very wrong, except the banks which well.. technically it would have been impossible for them to pay taxes in 2009, as they were
recording massive losses? no profit, no taxes.
Exxon however, when that article was written, had not even filed taxes for 2009 yet.
What the financial statement says is that ExxonMobil, in 2009, after a handful of deferrals, recorded a total U.S. income tax benefit (i.e., a
refund) of $46 million. Next to this, it shows total non-U.S. income taxes of $15.165 billion.
PS, this article I'm quoting was the guy who originally wrote the official article that your source is sourcing.
So it says Exxon was paid by the US Gov $46m for OVERPAID taxes, and $15b in non-us based taxes.
My mistake was in thinking that these figures somehow reflected actual tax benefits and liabilities.
Research sucks, I know..
Our article only focused on income taxes, but it’s worth noting that the 10-k also records $7.7 billion in other taxes in the U.S. (like sales
taxes) and more than $50 billion of other taxes and duties paid (I mean recorded) overseas.
Corporate laws do not regulate a company say how much they "overpaid" in taxes, only what outstanding tax liabilities it owes..
For the impossibility: If oil companies like Exxon, paid no taxes at all.. it raises a unusual anomoly in our Tax system... Why? Because after the
Federal Income Tax, oil companies are the next largest source of income.
The main reason Exxon has a low tax bill is that the majority of it's taxes come in the form of royalties, local taxes, income taxes, sales taxes,
and land usage taxes/fees. In the end, they had a profit of $35billion and a tax bill of $15billion, and a Federal refund of $45m
From 2003 to 2007, Exxon's earnings grew by 89%, while income taxes grew by 170%. Much of that growth was overseas. Oil-producing countries
charge companies like Exxon dearly to dig for oil. Arrangements vary from country to country, but Russia and Libya charge companies up to 90% of the
revenues they collect for extracting oil, according to Fadel Gheit, senior analyst for Oppenheimer (OPY). These arrangements—whether production
share agreements or royalty contracts—are not disclosed by companies and governments.
In tax terms, the U.S. government is kinder to oil companies. According to Securities & Exchange Commission filings, Exxon paid an effective tax
rate of 34% to the U.S. government in 2007, or $5.12 billion. While cheaper than rates from some foreign governments, it's still a higher rate than
many U.S. companies pay.
Average corporate tax rate in the US is 26%