Avoid US taxes by forming a merger abroad

Here's what many American companies have been and are doing to avoid the claws of the IRS.

They simply get a foreign 'address'.

All to the chagrins of the politicians.

Or is this really the master plan after all and the politicians are paid off shills of favorable laws ?

Only the big corporations have the resources to do this.

The small local companies can't compete.

Is Obama's recent 'announcement' about lowering corporate taxes just a ruse ?

Perhaps.

The companies are moving out anyway.

What's the answer ?

A tactic to avoid corporate taxes has U.S. companies on the move—merging with foreign firms and then setting up residence overseas.

On Monday, Michigan-based medicine manufacturer Perrigo agreed to buy the Irish drug company Elan for $8.6 billion. In the bargain, the combined company's headquarters will be in Ireland, which has a corporate tax rate of 12.5 percent, versus 35 percent in the U.S.

Just the day before, American advertising giant Omnicom Group announced plans for a $35 billion merger with France's Publicis Groupe, saying that the combined company's tax residence will be in the Netherlands, which has a 25 percent corporate tax rate.

Avoid US taxes by forming a merger abroad

I think its a fake out lull them evil corporations in to a false sense of security and POUNCE on them.

I honestly don't blame corporations at all for their 'tax evasion' they don't get out of their property taxes here, and other taxes they pay( see that's a winner since that is the justification of the 47% of Americans who have zero tax liability).

Abolish the IRS.
Abolish the Income tax.
Flat tax on corporations and small business @ 15%

Everyone is happy

reply to post by xuenchen

They'll probably do the same thing here that they did with commercial trucking companies playing games with state addresses to beat IFTA taxes (fuel taxes split between states). They took years and just watched companies keep registering a small support terminal in one of a couple states or not even that much. I think single offices boasted a number of big trucking companies, on paper. Indiana and Oklahoma, generally. Those two had tax laws which came out the best when it came time to tally mileages driven vs. gallons burned and what is still owed to who. (Among other issues that made them good)

Then one day, with damn near NO warning, they passed a new amendment to that whole domicile area of regulation on state registration for license plates on the trucks. You had to have a physical terminal of your own and doing a specified % of business out of it to register or maintain the plates you had on trucks at the time.

That blew a good % of the trucking industry off their chairs at the time because it was like a bait and ambush for how they were haaaappy to let companies keep gaming the system in a way that would get more and more difficult over years to just change off overnight .....like they made it near required to do and avoid fines/compliance issues.

If they would make a flat tax of 15% I would definitely be happy. When I say the government is trying to kill me I mean it - financially. I live hand to mouth and it's because my very tiny business pays out most of its income to various government agencies in taxes. And the paperwork is draining as it is never ending. Its as if the system is meant to break the little guy; wearing him down from every angle. It's working - I can't sustain much longer.

People on welfare are better off and that's part of why its draining - because I'm fighting the ethics of it all in my mind constantly. If there were a legal way to get around paying the government far more than I do myself I would in a heartbeat. The government is forcing people to become dishonest because being straight about it all equals results like my own. Good for people for finding loopholes. Wish they existed for the little guy that actually wants to work and provide a few jobs for others.

The obvious way to stimulate the economy is to foster an environment where small business can survive. Relieving the incredible tax burden that small business has to endure would enable so many would-be startups that currently cannot make that all-important profit that is required in the first few years of business.

Not to mention those already struggling presently. It means a great deal of jobs and local products that can compete against imports. Seems like such a no-brainer to me, so where are the brains in our government?