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Offshore Shell Games

2015

The Use of Offshore Tax Havens by Fortune 500 Companies


Offshore Shell Games

2015

The Use of Offshore Tax Havens by Fortune 500 Companies


Robert S. McIntyre, Citizens for Tax Justice Richard Phillips, Citizens for Tax Justice Phineas Baxandall, U.S. PIRG Education Fund


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October 2015



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Acknowledgments


The authors thank Amber Erickson, Grace Smith, Brian Harvey, and Kayla Kitson for their hard work in collecting the data behind this report. The authors also thank Jaimie Woo, formerly of U.S. PIRG and Matt Gardner of the Institute on Taxation and Economic Policy for their thoughtful comments and editorial support. The authors bear responsibility for any factual errors. The recommendations are those of the U.S. Public Interest Research Group Education Fund and Citizens for Tax Justice.


The U.S. PIRG Education Fund and Citizens for Tax Justice are grateful to the FACT Coalition and the Open Society Foundations for making this report possible.


The views expressed in this report are those of the authors and do not necessarily reflect the views of our funders.


image2015 Citizens for Tax Justice and U.S. PIRG Education Fund. Some Rights Reserved. This work is licensed under a Creative Commons Attribution Non-Commercial No Derivatives 3.0 Unported License. To view the terms of this license, visit creativecommons.org/licenses/by-nc-nd/3.0.


U.S. Public Interest Research Group Education Fund (U.S. PIRG Education Fund)

With public debate around important issues often dominated by special interests pursuing their own narrow agendas, U.S. PIRG Education Fund offers an independent voice that works on be- half of the public interest. U.S. PIRG Education Fund, a 501(c)(3) organization, works to protect consumers and promote good government. We investigate problems, craft solutions, educate the public, and offer Americans meaningful opportunities for civic participation. For more informa- tion about U.S. PIRG Education Fund, please visit http://www.uspirgedfund.org/.


Citizens for Tax Justice (CTJ)

Citizens for Tax Justice, founded in 1979, is a public interest research and advocacy organization focusing on federal, state and local tax policies and their impact upon our nation. CTJ’s mission is to give ordinary people a greater voice in the development of tax laws. Against the armies of special interest lobbyists for corporations and the wealthy, CTJ fights for fair taxes for middle- and low-income families, requiring the wealthy to pay their fair share, closing corporate tax loopholes, and adequately funding important government services. For more information about CTJ, please visit www.ctj.org.


Cover illustration: rolffimages/Bigstock

Design and layout: Alec Meltzer, meltzerdesign.net


Table of Contents

Executive Summary 1

Introduction 4

Most of America’s Largest Corporations

Maintain Subsidiaries in Offshore Tax Havens 7

Cash Booked Offshore for Tax Purposes by

U.S. Multinationals Doubled between 2008 and 2014 10

Evidence Indicates Much of Offshore Profits are Booked to Tax Havens 12

Firms Reporting Fewer Tax Haven Subsidiaries

Do Not Necessarily Dodge Fewer Taxes Offshore 16

Measures to Stop Abuse of Offshore Tax Havens 18

Methodology 20

Appendix: Offshore Profits and Tax Haven

Subsidiaries of Fortune 500 Companies 21

Endnotes 49


Executive Summary


U.S.-based multinational corporations are allowed to play by a different set of rules than small and domestic businesses or indi- viduals when it comes to the tax code. Rather than paying their fair share, many multina- tional corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in off- shore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corpora- tions’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year.


Congress, by failing to take action to end to this tax avoidance, forces ordinary Americans to make up the difference. Every dollar in taxes that corporations avoid by using tax havens must be balanced by higher taxes on individu- als, cuts to public investments and public ser- vices, or increased federal debt.


This study examines the use of tax havens by Fortune 500 companies in 2014. It reveals that tax haven use is ubiquitous among America’s largest companies and that a narrow set of companies benefits disproportionately.


Most of America’s largest corporations maintain subsidiaries in offshore tax ha- vens. At least 358 companies, nearly 72 percent of the Fortune 500, operate sub- sidiaries in tax haven jurisdictions as of the end of 2014.


Approximately 60 percent of companies with tax haven subsidiaries have set up at least one in Bermuda or the Cayman Islands

$8.3 billion offshore for tax purposes on which it would owe $2.7 billion in U.S. taxes. This implies Nike pays a mere 2.5 percent tax rate to foreign governments


on those offshore profits, indicating that nearly all of the money is officially held by subsidiaries in tax havens. Nike likely does this in part by licensing the trademarks for some of its products to three subsidiaries in Bermuda to which it then pays royalties (essentially to itself).


Some companies that report a significant amount of money offshore maintain hundreds of subsidiaries in tax havens, including the fol- lowing:



2 Offshore Shell Games 2015



Corporations that disclose fewer tax haven subsidiaries do not necessarily dodge taxes less. Many companies have disclosed fewer tax haven subsidiaries in recent years, all while increasing the amount of cash they keep offshore. Some companies may simply be failing to disclose substantial numbers of tax haven subsidiaries. Others may be booking larger amounts of income to fewer tax haven subsidiaries.


Consider:




18 Offshore Shell Games 2015



code by giving companies a preferential tax rate on income earned from patents, trade- marks, and other “intellectual property” which is easy to assign to offshore subsid- iaries. Such a policy would be an unjusti- fied and ineffective giveaway to multina- tional U.S. corporations.35


Close the most egregious offshore loopholes.


Policy makers can take some basic common- sense steps to curtail some of the most obvious and brazen ways that some companies abuse offshore tax havens.



Measures to Stop Abuse of Offshore Tax Havens 19



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Methodology


To calculate the number of tax haven subsid- iaries maintained by the Fortune 500 corpora- tions, we used the same methodology as a 2008 study by the Government Accountability Of- fice that used 2007 data (see endnote 5).


The list of 50 tax havens used is based on lists compiled by three sources using similar char- acteristics to define tax havens. These sources were the Organisation for Economic Co-oper- ation and Development (OECD), the National Bureau of Economic Research, and a U.S. Dis- trict Court order. This court order gave the IRS the authority to issue a “John Doe” sum- mons, which included a list of tax havens and financial privacy jurisdictions.


The companies surveyed make up the 2015 Fortune 500, a list of which can be found here: http://money.cnn.com/magazines/fortune/ fortune500/.


To figure out how many subsidiaries each company had in the 50 known tax havens, we looked at “Exhibit 21” of each company’s 2014 10-K report, which is filed annually with the Securities and Exchange Commission (SEC). Exhibit 21 lists out every reported subsidiary of the company and the country in which it is

registered. We used the SEC’s EDGAR data- base to find the 10-K filings. 358 of the For- tune companies disclose offshore subsidiaries, but it is possible that many of the remaining 142 companies simply do not disclose their off- shore tax haven subsidiaries.


We also used 10-K reports to find the amount of money each company reported it kept offshore in 2014. This information is typically found in the tax footnote of the 10-K. The companies disclose this information as the amount they keep “permanently reinvested” abroad.


As explained in this report, 57 of the companies surveyed disclosed what their estimated tax bill would be if they repatriated the money they kept offshore. This information is also found in the tax footnote. To calculate the tax rate these companies paid abroad in 2014, we first divided the estimated tax bill by the total amount kept offshore. That number multiplied by 100 equals the U.S. tax rate the company would pay if they repatriated that foreign cash. Since companies receive dollar-for-dollar credits for taxes paid to foreign governments, the tax rate paid abroad is simply the difference between 35% — the U.S. statutory corporate tax rate — and the tax rate paid upon repatriation.


20 Offshore Shell Games 2015



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Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies



Company

Tax Haven

Subsidiaries

Location of

Tax Haven Subsidiaries

Amount Held Tax Rate Paid

Offshore on Offshore ($ millions) Cash

Estimated U.S.

Tax Bill on Offshore Cash

State

Located


3M

13

Hong Kong(1), Luxembourg(3), Netherlands(1), Panama(1), Singapore(4), Switzerland(3)

11,200

Minnesota

Abbott Laboratories

91

Bahamas(2), Barbados(1),

23,000

Illinois

Bermuda(6), British

Virgin Islands(1), Cayman

Islands(4), Costa Rica(3),

Cyprus(1), Gibraltar(3),

Ireland(13), Lebanon(1),

Luxembourg(7), Malta(2),

Netherlands(23), Panama(13),

Singapore(5), Switzerland(5),

U.S. Virgin Islands(1)

AbbVie Inc

35

Bahamas(1), Bermuda(3),

23,000

Illinois

Channel Islands(3), Cyprus(1),

Gibraltar(2), Hong Kong(1),

Ireland(5), Luxembourg(5),

Netherlands(9), Panama(1),

Singapore(2), Switzerland(2)

Advance Auto Parts

108

Virginia

Advanced Micro

3

Barbados(1), Bermuda(1),

349

0%

122

California

Devices

Singapore(1)

AECOM Technology

977

California

AES

206

Bahamas(1), Barbados(1),

Virginia

Bermuda(6), British Virgin

Islands(10), Cayman

Islands(83), Channel Islands(1),

Costa Rica(1), Cyprus(2),

Hong Kong(1), Ireland(3),

Jordan(2), Luxembourg(1),

Mauritius(3), Netherlands(78),

Panama(7), Singapore(6)

Aetna

11

Bermuda(5), Cayman

Connecticut

Islands(1), Hong Kong(2),

Ireland(1), Singapore(2)


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 21


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

AGCO

17

Hong Kong(1), Ireland(2), Luxembourg(1), Netherlands(10), Singapore(1), Switzerland(2)

3,300

Georgia

Agilent Technologies

7

Luxembourg(2), Netherlands(1), Singapore(3), Switzerland(1)

5,700

California

Air products & Chemicals

14

Bahrain(1), Bermuda(1), Ireland(3), Netherlands(5), Panama(1), Singapore(2), Switzerland(1)

5,894

10%

1,466

Pennsylvania

AK Steel Holding

4

Cayman Islands(1), Netherlands(1), Singapore(1), Vanuatu(1)

27

0%

10

Ohio

Alcoa

2

Luxembourg(1), Netherlands(1)

4,600

New York

Alleghany

5

Gibraltar(1), Panama(2), Switzerland(2)

New York

Allergan

28

Bermuda(5), Cayman Islands(2), Costa Rica(1), Hong Kong(2), Ireland(10),

Luxembourg(1), Netherlands(4), Singapore(1), Switzerland(2)

4,485

California

Alliance Data Systems

33

Bermuda(3), Hong Kong(3), Ireland(3), Luxembourg(2), Netherlands(19), Singapore(1), Switzerland(2)

55

Texas

Allstate

2

Barbados(1), Ireland(1)

Illinois

Amazon.com

2

Luxembourg(2)

2,500

Washington

American Express

23

Bahrain(1), Channel Islands(5), Hong Kong(1),

Luxembourg(4), Netherlands(8), Netherlands Antilles(1), Singapore(1), Switzerland(2)

9,700

4%

3,000

New York

American Financial Group

2

Bermuda(1), Cayman Islands(1)

Ohio

American International Group

17

Bahrain(1), Bermuda(4), Cyprus(1), Hong Kong(2), Ireland(2), Lebanon(1), Liechtenstein(1), Panama(1), Singapore(3), Switzerland(1)

New York

Ameriprise Financial

18

Channel Islands(9), Hong Kong(1), Luxembourg(3), Singapore(1), Switzerland(4)

180

13%

40

Minnesota

AmerisourceBergen

217

Pennsylvania

Amgen

8

Bermuda(3), Ireland(1), Netherlands(2), Switzerland(2)

29,300

-1%

10,500

California


22 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Amphenol

15

Hong Kong(5), Ireland(1), Luxembourg(2), Netherlands(3), Samoa(2), Singapore(2)

Connecticut

AMR

3

Bermuda(2), St. Lucia(1)

Texas

Anadarko Petroleum

9

Barbados(1), Cayman Islands(3), Gibraltar(2), Luxembourg(2), Netherlands(1)

Texas

Anixter International

14

Barbados(1), Costa Rica(1), Hong Kong(2), Ireland(1), Netherlands(6), Panama(1), Singapore(1), Switzerland(1)

679

27%

52

Illinois

Apache

57

Cayman Islands(44), Luxembourg(8), Netherlands(1), Singapore(2), St. Lucia(1), Switzerland(1)

Texas

Apple

3

Ireland(3)

181,100

2%

59,200

California

Applied Materials

21

Cayman Islands(1), Gibraltar(1), Hong Kong(3), Ireland(1), Luxembourg(6), Netherlands(3), Singapore(3), Switzerland(3)

2,700

California

Aramark

18

Bermuda(1), British Virgin Islands(3), Cayman Islands(1), Hong Kong(1), Ireland(10), Luxembourg(1), Netherlands(1)

Pennsylvania

Archer Daniels Midland

4

Cayman Islands(1), Netherlands(2), Switzerland(1)

8,600

Illinois

ARRIS Group

10

Barbados(1), Hong Kong(2), Ireland(1), Luxembourg(2), Netherlands(2), Singapore(1), Switzerland(1)

48

Georgia

Arrow Electronics

51

British Virgin Islands(1), Cayman Islands(3), Channel Islands(1), Hong Kong(15), Ireland(1), Luxembourg(1), Mauritius(1), Netherlands(11), Seychelles(1), Singapore(15), Switzerland(1)

2,947

Colorado

Ashland

33

Barbados(1), Bermuda(5), British Virgin Islands(1), Cyprus(1), Gibraltar(2), Hong Kong(2), Ireland(2), Luxembourg(1), Netherlands(11), Singapore(3), Switzerland(2), U.S.Virgin Islands(2)

1,800

Kentucky

Assurant

12

Bermuda(1), Cayman Islands(4), Ireland(1), Isle of Man(1), Malta(1), Netherlands(2),

Turks and Caicos(2)

163

34%

1

New York

Autoliv

3

Netherlands(3)

4,000

Michigan


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 23


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Automatic Data Processing

418

New Jersey

AutoNation

1

Cayman Islands(1)

Florida

AutoZone

345

Tennessee

Avery Dennison

70

British Virgin Islands(9), Channel Islands(1), Gibraltar(2), Hong Kong(8), Ireland(2), Luxembourg(13), Mauritius(2), Netherlands(25), Singapore(5), Switzerland(3)

2,200

California

Avis Budget Group

24

Barbados(1), Channel Islands(5), Isle of Man(3), Luxembourg(3), Monaco(1), Netherlands(6), Singapore(1), Switzerland(3),

U.S. Virgin Islands(1)

853

New Jersey

Avnet

43

British Virgin Islands(3), Hong Kong(16), Ireland(4), Macau(1), Malta(1), Netherlands(7), Singapore(9), Switzerland(2)

3,060

Arizona

Avon Products

28

Bermuda(4), Cayman Islands(10), Hong Kong(1), Ireland(1), Luxembourg(1), Mauritius(1), Netherlands(6), Panama(2), Singapore(1), Switzerland(1)

New York

Baker Hughes

11

Luxembourg(8), Netherlands(3)

6,100

Texas

Ball

29

British Virgin Islands(4), Cayman Islands(2), Hong Kong(9), Luxembourg(5), Netherlands(6), Singapore(1), Switzerland(2)

Colorado

Bank of America Corp.

22

Bermuda(2), Cayman Islands(1), Channel Islands(1), Costa Rica(1), Hong Kong(3), Ireland(1), Luxembourg(3), Netherlands(2), Singapore(6), Switzerland(2)

17,200

9%

4,500

North Carolina

Bank of New York Mellon Corp.

5

Channel Islands(1), Ireland(3), Luxembourg(1)

6,000

15%

1,200

New York

Baxter International

19

Costa Rica(1), Hong Kong(1), Ireland(2), Malta(2), Netherlands(4), Singapore(2), Switzerland(7)

13,900

5%

4,200

Illinois

BB&T Corp.

3

Bermuda(1), Cayman Islands(1), Turks and Caicos(1)

North Carolina


24 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Becton Dickinson

38

Bermuda(2), British Virgin Islands(1), Cayman Islands(3), Gibraltar(4), Hong Kong(1), Ireland(4), Luxembourg(8), Mauritius(1), Netherlands(5), Singapore(5), Switzerland(4)

4,900

New Jersey

Berkshire Hathaway

9

Cayman Islands(1), Gibraltar(2), Luxembourg(2), Netherlands(4)

10,000

Nebraska

Best Buy

13

Bermuda(1), Hong Kong(2), Luxembourg(1),

Mauritius(7), Netherlands(1), Turks and Caicos(1)

770

Minnesota

Biogen

14

Bermuda(1), Hong Kong(1), Ireland(1), Isle of Man(2), Luxembourg(1), Netherlands(2), Singapore(1), Switzerland(5)

4,600

1%

1,550

Massachusetts

BlackRock

40

Cayman Islands(5), Channel Islands(8), Cyprus(1), Hong Kong(4), Ireland(5), Isle of Man(3), Luxembourg(7), Netherlands(1), Singapore(5), Switzerland(1)

3,871

New York

Blackstone Group

161

Cayman Islands(128), Channel Islands(2), Hong Kong(5), Ireland(7), Luxembourg(1), Mauritius(4), Netherlands(12), Singapore(2)

New York

Boeing

1

Bermuda(1)

800

Illinois

BorgWarner

7

Bermuda(1), Hong Kong(1), Ireland(1), Luxembourg(3), Monaco(1)

2,700

Michigan

Boston Scientific

20

Bermuda(1), Costa Rica(1), Hong Kong(1), Ireland(6), Lebanon(2), Netherlands(6), Singapore(1), Switzerland(2)

7,700

Massachusetts

Bristol-Myers Squibb

22

Barbados(1), Bermuda(1), Hong Kong(1), Ireland(6),

Luxembourg(2), Netherlands(7), Panama(1), Singapore(1), Switzerland(2)

24,000

New York

Broadcom

5

Bermuda(1), Cayman Islands(3), Singapore(1)

4,850

California

C.H. Robinson Worldwide

11

Hong Kong(3), Ireland(2), Luxembourg(1), Netherlands(1), Singapore(3), Switzerland(1)

Minnesota


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 25

Company Tax Haven Subsidiaries

image

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash

State Located


Caesars Entertainment

22

Bahamas(3), Barbados(1), Bermuda(2), British Virgin Islands(1), Hong Kong(3), Isle of Man(2), Macau(2), Netherlands(7), Singapore(1)

118

24%

13

Nevada

Cameron

56

Barbados(1), Bermuda(1),

5,100

Texas

International

Cayman Islands(11),

Hong Kong(1), Ireland(4),

Luxembourg(24), Malta(1),

Netherlands(9), Singapore(4)

Campbell Soup

7

Hong Kong(4), Luxembourg(1),

740

New Jersey

Netherlands(1), Singapore(1)

Capital One

1,400

Virginia

Financial

Cardinal Health

8

Bermuda(1), Hong Kong(1),

1,900

Ohio

Ireland(1), Luxembourg(1),

Malta(1), Netherlands(1),

Singapore(1), Switzerland(1)

CarMax

1

Bermuda(1)

Virginia

Caterpillar

72

Bermuda(8), Cayman Islands(2),

18,000

Illinois

Channel Islands(1), Costa

Rica(1), Hong Kong(10),

Ireland(2), Luxembourg(10),

Netherlands(11), Panama(3),

Singapore(11), Switzerland(13)

CB Richard Ellis

4

Channel Islands(1),

1,300

California

Group

Luxembourg(2), Netherlands(1)

CBS

44

Bahamas(8), Bermuda(3),

3,990

New York

Cayman Islands(7),

Cyprus(1), Luxembourg(6),

Netherlands(12), Netherlands

Antilles(1), Panama(1),

Singapore(2), Switzerland(3)

CC Media Holdings

45

Bahamas(1), Bermuda(1), British

Texas

Virgin Islands(2), Cayman

Islands(4), Costa Rica(1),

Hong Kong(2), Ireland(4),

Netherlands(10), Netherlands

Antilles(4), Panama(1),

Singapore(3), Switzerland(11),

Turks and Caicos(1)

CDW

67

Illinois

Celanese

15

Bermuda(1), Cayman

3,800

Texas

Islands(1), Cyprus(1), Hong

Kong(1), Luxembourg(3),

Netherlands(4), Singapore(4)


26 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Celgene

26

Bermuda(1), Hong Kong(2), Ireland(2), Luxembourg(2), Netherlands(4), Singapore(1), Switzerland(14)

7,541

New Jersey

CenturyLink

18

British Virgin Islands(2), Hong Kong(5), Mauritius(1), Netherlands(6), Singapore(3), Switzerland(1)

Louisiana

CH2M Hill

2

Luxembourg(1), Netherlands(1)

331

Colorado

Chevron

12

Bahamas(2), Bermuda(8), Liberia(1), Singapore(1)

35,700

California

CHS

11

Bermuda(1), Cyprus(1), Hong Kong(1), Luxembourg(3), Netherlands(1), Singapore(2), Switzerland(2)

Minnesota

Chubb

1

Bermuda(1)

New Jersey

Cigna

14

Bahrain(1), Bermuda(4), Channel Islands(1), Hong Kong(4), Malta(1), Netherlands(3)

1,800

23%

218

Connecticut

Cisco Systems

59

Bahrain(1), Bermuda(6), Cayman Islands(1), Channel Islands(1), Costa Rica(1), Cyprus(1), Hong Kong(9), Ireland(9), Jordan(1), Luxembourg(3), Mauritius(2), Netherlands(13), Panama(1), Singapore(7), Switzerland(3)

52,700

California

Citigroup

41

Bahamas(7), Bermuda(3), British Virgin Islands(1), Cayman Islands(6), Costa Rica(4), Hong Kong(5), Ireland(2), Mauritius(2), Netherlands(2), Panama(1), Singapore(5), Switzerland(3)

43,800

9%

11,600

New York

Clorox

11

Bermuda(1), British Virgin Islands(1), Cayman Islands(1), Costa Rica(1), Hong

Kong(2), Luxembourg(2), Panama(1), Switzerland(2)

204

8.50%

54

California

CMS Energy

1

Cayman Islands(1)

Michigan

Coca-Cola

12

Cayman Islands(3), Costa Rica(1), Ireland(2),

Luxembourg(1), Netherlands(1), Singapore(4)

33,300

Georgia

Coca-Cola Enterprises

4

Luxembourg(4)

Georgia


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 27


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Cognizant Technology Solutions

15

Channel Islands(2), Costa Rica(1), Cyprus(2), Ireland(1), Luxembourg(1), Mauritius(2), Netherlands(3), Singapore(1), Switzerland(2)

6,121

New Jersey

Colgate-Palmolive

11

British Virgin Islands(1), Hong Kong(2), Ireland(1), Netherlands(2), Singapore(3), Switzerland(2)

4,900

New York

Comcast

7

Bermuda(2), Cayman Islands(1), Netherlands(4)

Pennsylvania

Commercial Metals

13

Bermuda(2), Cyprus(1), Hong Kong(1), Luxembourg(4), Singapore(2), Switzerland(3)

488

Texas

Community Health Systems

2

Cayman Islands(2)

Tennessee

Computer Sciences

37

Bahrain(1), British Virgin Islands(2), Costa Rica(1), Hong Kong(3), Ireland(7), Luxembourg(5), Mauritius(1), Netherlands(5), Panama(1), Singapore(10), Switzerland(1)

2,552

Virginia

ConAgra Foods

1

Netherlands(1)

660

Nebraska

ConocoPhillips

18

Bahamas(1), Bermuda(5), British Virgin Islands(1), Cayman Islands(5), Liberia(1), Luxembourg(1), Netherlands(3), Singapore(1)

293

Texas

Con-way

32

Michigan

Corn Products International

9

Luxembourg(4), Mauritius(2), Netherlands(2), Singapore(1)

2,172

Illinois

Corning

12

Ireland(1), Luxembourg(6), Mauritius(1), Netherlands(3), Singapore(1)

10,300

New York

Costco Wholesale

3,619

Washington

Crown Holdings

19

Barbados(1), British Virgin Islands(1), Hong Kong(3), Ireland(1), Jordan(1), Luxembourg(1), Netherlands(4), Singapore(5), Switzerland(2)

774

Pennsylvania

CST Brands

965

Texas

Cummins

25

Barbados(1), Costa Rica(1), Hong Kong(3), Netherlands(13), Panama(2), Singapore(5)

3,800

Indiana

D.R. Horton

1

Turks and Caicos(1)

Texas


28 Offshore Shell Games 2015


Company

Tax Haven

Subsidiaries

Location of

Tax Haven Subsidiaries

Amount Held Tax Rate Paid

Offshore on Offshore ($ millions) Cash

Estimated U.S.

Tax Bill on Offshore Cash

State

Located


Dana Holding

15

Bermuda(1), British Virgin Islands(2), Cayman Islands(1), Gibraltar(1), Hong Kong(3), Ireland(1), Luxembourg(4), Mauritius(1), Switzerland(1)

Ohio

Danaher

34

Hong Kong(5), Ireland(5),

11,800

District of

Netherlands(10), Singapore(5),

Columbia

Switzerland(9)

DaVita

4

Netherlands(1), Singapore(3)

Colorado

Dean foods

2

Netherlands(2)

14

Texas

Deere

5

Luxembourg(3), Singapore(1),

4,677

Illinois

Switzerland(1)

Delta Air Lines

1

Bermuda(1)

Georgia

Devon Energy

1,800

Oklahoma

Dick's Sporting

4

Hong Kong(4)

Pennsylvania

Goods

Dillard's

1

Bermuda(1)

Arkansas

DirecTV

15

Barbados(1), British

103

California

Virgin Islands(2), Cayman

Islands(5), Mauritius(2),

Netherlands(4), St. Lucia(1)

Discover Financial

2

Hong Kong(1), Singapore(1)

Illinois

Services

Discovery

3

Netherlands(2), Singapore(1)

329

Maryland

Communications

Dollar General

1

Hong Kong(1)

Tennessee

Domtar

1

Switzerland(1)

South Carolina

Dover

31

Barbados(1), Cayman Islands(1),

1,300

Illinois

Costa Rica(1), Hong Kong(3),

Luxembourg(4), Netherlands(9),

Singapore(4), Switzerland(7),

U.S. Virgin Islands(1)

Dow Chemical

92

Bahrain(3), Bermuda(7),

18,037

Michigan

Costa Rica(2), Hong Kong(7),

Ireland(2), Luxembourg(1),

Mauritius(2), Netherlands(41),

Panama(1), Singapore(15),

Switzerland(10), U.S.

Virgin Islands(1)

Dr Pepper Snapple

3

Netherlands(3)

354

Texas

Group

Duke Energy

29

Bermuda(14), Cayman

North Carolina

Islands(5), Luxembourg(4),

Netherlands(6)


image

Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 29


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

DuPont

22

Bermuda(2), Hong Kong(2), Luxembourg(10),

Netherlands(4), Singapore(1), Switzerland(3)

17,226

Delaware

Eastman Chemical

43

Costa Rica(1), Gibraltar(1), Hong Kong(5), Luxembourg(8), Malta(1), Mauritius(1), Netherlands(15), Singapore(10), Switzerland(1)

1,600

Tennessee

eBay

38

British Virgin Islands(1), Cayman Islands(1), Hong Kong(2), Ireland(5), Luxembourg(18), Mauritius(1), Netherlands(2), Singapore(4), Switzerland(4)

7,900

California

Ecolab

80

Antigua and Barbuda(1), Aruba(1), Bahamas(1), Barbados(1), Bermuda(1), Cayman Islands(2), Channel Islands(1), Costa Rica(1), Hong Kong(5), Ireland(4), Luxembourg(11), Malta(3), Mauritius(1), Netherlands(33), Panama(1), Singapore(4),

St. Lucia(1), Switzerland(6),

U.S. Virgin Islands(2)

1,800

Minnesota

Eli Lilly

27

Bermuda(2), British Virgin Islands(3), Cayman Islands(4), Ireland(4), Netherlands(3), Singapore(2), Switzerland(8),

U.S. Virgin Islands(1)

25,700

Indiana

EMC

4

Ireland(3), Netherlands(1)

11,800

Massachusetts

Emerson electric

86

Bahrain(2), Bermuda(2), British Virgin Islands(1), Cayman Islands(4), Channel Islands(1), Costa Rica(1), Hong Kong(14), Ireland(4), Luxembourg(1), Mauritius(3), Netherlands(25), Panama(1),

Singapore(14), Switzerland(13)

7,100

Missouri

Energy Transfer Equity

7

Bermuda(5), Netherlands(1), Panama(1)

Texas

EOG Resources

17

Cayman Islands(11), Hong Kong(1), Netherlands(5)

Texas

Estée Lauder

2

Luxembourg(1), Switzerland(1)

2,918

New York

Exelon

6

Luxembourg(2), Marshall Islands(4)

Illinois


30 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Expedia

18

Cayman Islands(5), Costa Rica(1), Hong Kong(3), Ireland(1), Luxembourg(1), Mauritius(1), Netherlands(1), Singapore(4), Switzerland(1)

Washington

Expeditors International of Washington

10

Bahrain(1), Costa Rica(1), Hong Kong(1), Ireland(1), Jordan(1), Lebanon(1), Netherlands(1), Panama(1), Singapore(1), Switzerland(1)

Washington (State)

Express Scripts

5

Ireland(1), Netherlands(3), Switzerland(1)

96

Missouri

Exxon Mobil

37

Bahamas(22), Bermuda(1), Cayman Islands(1), Hong Kong(2), Luxembourg(2), Netherlands(7), Singapore(2)

51,000

Texas

Facebook

3

Ireland(3)

California

Family Dollar Stores

4

Hong Kong(3), Luxembourg(1)

35

North Carolina

Fedex

1

Luxembourg(1)

1,900

Tennessee

Fidelity National Information Services

26

Barbados(1), Cayman Islands(1), Channel Islands(2), Hong Kong(3), Ireland(1), Luxembourg(4), Mauritius(1), Netherlands(9), Singapore(3), Switzerland(1)

Florida

Fifth Third Bancorp

4

Hong Kong(1), Mauritius(1), Turks and Caicos(2)

Ohio

First Data

35

Bermuda(2), Costa Rica(1), Hong Kong(2), Ireland(14), Luxembourg(6), Macau(1), Mauritius(1), Netherlands(4), Panama(1), Singapore(3)

Georgia

Fluor

71

Barbados(2), Bermuda(7), British Virgin Islands(3), Channel Islands(9), Cyprus(2), Ireland(3), Liechtenstein(2), Mauritius(4), Netherlands(34), Panama(1), Singapore(3), St. Lucia(1)

Texas

FMC Technologies

10

Luxembourg(2), Netherlands(5), Singapore(1), Switzerland(2)

1,619

5%

492

Texas

Foot Locker

15

Ireland(4), Netherlands(10), Switzerland(1)

999

New York

Ford Motor

4

Mauritius(1), Netherlands(2), Switzerland(1)

4,300

30%

200

Michigan


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 31


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Franklin Resources

34

Bahamas(2), Bermuda(1), British Virgin Islands(1), Cayman Islands(12), Channel Islands(2), Hong Kong(4), Ireland(2), Luxembourg(4), Mauritius(1), Singapore(3), Switzerland(2)

7,300

California

GameStop

10

Ireland(5), Luxembourg(4), Switzerland(1)

595

Texas

Gap

7

Hong Kong(3), Ireland(1), Netherlands(2), Singapore(1)

581

23%

72

California

General Cable

13

Cayman Islands(2), Channel Islands(1), Costa Rica(1), Hong Kong(2), Mauritius(3), Netherlands(1), Panama(3)

370

kentucky

General Dynamics

9

Bermuda(1), Hong Kong(2), Singapore(1), Switzerland(5)

1,900

Virginia

General Electric

18

Bahamas(1), Bermuda(3), Ireland(2), Luxembourg(3), Netherlands(5), Singapore(4)

119,000

Connecticut

General Mills

49

Bermuda(7), Gibraltar(1), Hong Kong(6), Ireland(1), Lebanon(2), Luxembourg(6), Mauritius(2), Netherlands(15), Panama(1), Singapore(4), Switzerland(4)

1,900

Minnesota

General Motors

21

Bermuda(2), Cayman Islands(2), Hong Kong(1), Ireland(1), Netherlands(9), Singapore(2), Switzerland(4)

7,100

Michigan

Genuine Parts

4

Hong Kong(2), Netherlands(2)

712

Georgia

Genworth Financial

10

Bermuda(3), Cayman Islands(1), Channel Islands(1), Hong Kong(2), Ireland(2), Mauritius(1)

1,642

Virginia

Gilead Sciences

12

Hong Kong(1), Ireland(6), Luxembourg(1), Netherlands(1), Panama(1), Singapore(1), Switzerland(1)

15,600

0%

5,500

California

Goldman Sachs Group

20

British Virgin Islands(1), Cayman Islands(9), Channel Islands(1), Hong Kong(2), Mauritius(4), Singapore(3)

24,880

16%

4,660

New York

Goodyear Tire & Rubber

12

Bermuda(1), Ireland(2), Luxembourg(4), Mauritius(1), Netherlands(2), Singapore(1), Switzerland(1)

2,600

Ohio

Google

2

Ireland(2)

47,400

California

Graybar Electric

66

Missouri


32 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Group 1 Automotive

3

Netherlands(2), Turks and Caicos(1)

17

7%

5

Texas

H.J. Heinz

5

Cayman Islands(1), Gibraltar(1), Netherlands(2), Singapore(1)

Pennsylvania

Halliburton

15

Barbados(1), Bermuda(1), Cayman Islands(2), Luxembourg(2), Netherlands(7), Singapore(1), Switzerland(1)

6,700

Texas

Hanesbrands

46

Bermuda(1), British Virgin Islands(1), Cayman Islands(16), Costa Rica(6), Hong Kong(4), Ireland(1), Jordan(1), Luxembourg(7), Mauritius(1), Netherlands(2), Panama(3), Switzerland(3)

2,400

North Carolina

Harley-Davidson

4

Hong Kong(1), Netherlands(1), Singapore(1), Switzerland(1)

Wisconsin

Harman International Industries

10

Hong Kong(3), Mauritius(1), Netherlands(2), Singapore(3), Switzerland(1)

895

Connecticut

Hartford Financial Services

7

Bermuda(6), Ireland(1)

Connecticut

HCA Holdings

11

Bermuda(1), Luxembourg(7), Switzerland(3)

Tennessee

HD Supply

2

Hong Kong(1), Panama(1)

Georgia

Health Net

2

Cayman Islands(2)

California

Henry Schein

1

Switzerland(1)

826

New York

Hershey

4

Hong Kong(1), Netherlands(1), Singapore(2)

196

Pennsylvania

Hess

8

Cayman Islands(7), Netherlands(1)

8,300

New York

Hewlett-Packard

25

Bermuda(1), Cayman Islands(3), Costa Rica(1), Cyprus(1), Hong Kong(1), Ireland(3), Luxembourg(1), Macau(1), Netherlands(7), Singapore(4), Switzerland(2)

42,900

California

Hilton

26

Aruba(1), Barbados(1), Cyprus(1), Gibraltar(1), Hong Kong(1), Isle of Man(1), Luxembourg(2), Maldives(2), Malta(1), Mauritius(1), Netherlands(10), Panama(1), Singapore(2), Switzerland(1)

Virginia

Home Depot

3,400

Georgia


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 33


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Honeywell International

5

Luxembourg(1), Singapore(1), Switzerland(3)

15,000

New Jersey

Hormel Foods

1

Netherlands(1)

88

Minnesota

Host Hotels & Resorts

18

Cayman Islands(2), Netherlands(12), Singapore(2),

U.S. Virgin Islands(2)

Maryland

HRG Group

21

Bermuda(1), British Virgin Islands(1), Cayman Islands(1), Costa Rica(1), Hong Kong(6), Ireland(1), Luxembourg(3), Netherlands(4), Panama(1), Singapore(1), Switzerland(1)

352

New York

Humana

1

Cayman Islands(1)

Kentucky

Huntington Ingalls Industries

1

Cayman Islands(1)

Virginia

Huntsman

28

Cayman Islands(1), Hong Kong(6), Luxembourg(2), Netherlands(12), Panama(1), Singapore(4), Switzerland(2)

307

Utah

Icahn Enterprises

20

Aruba(3), Bahrain(2), Bermuda(1), British Virgin Islands(1), Cayman Islands(1), Channel Islands(1), Hong Kong(2), Luxembourg(1), Mauritius(1), Netherlands(5), Singapore(1), Switzerland(1)

New York

Illinois Tool Works

81

Bermuda(11), British Virgin Islands(4), Costa Rica(2), Hong Kong(9), Ireland(5), Luxembourg(10), Malta(1), Mauritius(2), Netherlands(23), Singapore(11), Switzerland(3)

7,100

Illinois

Ingram Micro

47

Barbados(1), Bermuda(1), British Virgin Islands(6), Cayman Islands(4), Costa Rica(2), Hong Kong(4), Lebanon(1), Luxembourg(7), Mauritius(2), Netherlands(10), Singapore(7), Switzerland(2)

2,100

California

Insight Enterprises

10

Hong Kong(1), Ireland(1), Netherlands(6), Singapore(1), Switzerland(1)

80

Arizona

Intel

14

Cayman Islands(6), Hong Kong(4), Ireland(1), Netherlands(3)

23,300

California


34 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

International Business Machines

15

Bahamas(1), Barbados(1), Bermuda(1), Costa Rica(1), Hong Kong(1), Ireland(2), Luxembourg(1), Malta(1), Mauritius(1), Netherlands(2), Seychelles(1), Singapore(1), Switzerland(1)

61,400

New York

International Paper

18

Bermuda(1), British Virgin Islands(1), Hong Kong(3), Luxembourg(5), Netherlands(4), Singapore(3), Switzerland(1)

5,200

Tennessee

Interpublic Group

2

Hong Kong(1), Luxembourg(1)

2,214

New York

INTL Fcstone

6

British Virgin Islands(1), Ireland(1), Netherlands(2), Singapore(2)

175

New York

J.M. Smucker

3

Hong Kong(1), Netherlands(2)

249

Ohio

J.P. Morgan Chase

& Co.

4

Ireland(1), Luxembourg(2), Mauritius(1)

31,100

12%

7,000

New York

Jabil Circuit

36

Bermuda(1), British Virgin Islands(8), Cayman

Islands(3), Channel Islands(1), Hong Kong(8), Ireland(2), Luxembourg(3), Mauritius(2), Netherlands(3), Singapore(5)

2,300

Florida

Jacobs Engineering Group

12

Hong Kong(1), Ireland(1), Luxembourg(1), Macau(1), Netherlands(3), Panama(1), Singapore(4)

26

7%

7

California

Jarden

27

Bahamas(2), Bermuda(1), Cayman Islands(2), Costa Rica(1), Hong Kong(10), Luxembourg(4), Macau(1), Netherlands(3), Switzerland(3)

1,200

Florida

JetBlue Airways

1

Bermuda(1)

New York

Johnson & Johnson

58

Hong Kong(1), Ireland(22), Luxembourg(4), Netherlands(11), Singapore(1), Switzerland(19)

53,400

New Jersey

Johnson Controls

8,100

Wisconsin

KBR

10

Cayman Islands(4), Netherlands(5), Singapore(1)

320

Texas

Kellogg

34

Bermuda(3), Cayman Islands(2), Costa Rica(1), Cyprus(1), Hong Kong(2), Ireland(10), Luxembourg(7), Malta(1), Netherlands(2), Panama(1), Singapore(1), Switzerland(3)

2,200

Michigan


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 35


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Kelly Services

10

Luxembourg(2), Netherlands(3), Singapore(3), Switzerland(2)

111

Michigan

Kimberly-Clark

42

Bahrain(1), Barbados(1), Bermuda(1), Cayman Islands(7), Channel Islands(2), Costa Rica(2), Cyprus(1), Hong Kong(2), Luxembourg(4), Malta(1), Netherlands(10), Panama(2), Singapore(7), Switzerland(1)

8,600

Texas

Kindred Healthcare

1

Cayman Islands(1)

Kentucky

KKR

258

Cayman Islands(217), Channel Islands(6), Cyprus(1), Hong Kong(3), Ireland(12), Luxembourg(6), Mauritius(5), Singapore(8)

New York

Kraft Foods Group

2

Netherlands(2)

578

15%

118

Illinois

L-3 Communications

6

Costa Rica(1), Hong Kong(2), Ireland(1), Netherlands(1), Singapore(1)

331

New York

Laboratory Corp. of America

Costa Rica(1), Hong Kong(2), Ireland(1), Netherlands(1), Singapore(1)

30

29%

2

North Carolina

Las Vegas Sands

44

Bermuda(1), Cayman Islands(21), Hong Kong(4), Macau(10), Mauritius(1), Netherlands(5), Singapore(2)

6,070

Nevada

Lear

14

Cayman Islands(2), Hong Kong(1),

Luxembourg(5),Mauritius(2), Netherlands(3), Singapore(1)

1,200

Michigan

Lennar

2

Bermuda(1), Turks and Caicos(1)

Florida

Leucadia National

4

Hong Kong(3), Switzerland(1)

171

8%

46

New York

Level 3 Communications

28

Bermuda(3), Cayman Islands(2), Costa Rica(1), Hong Kong(3), Ireland(6), Luxembourg(3), Mauritius(1), Netherlands(5), Panama(1), Singapore(1), Switzerland(1),

U.S. Virgin Islands(1)

Colorado

Liberty Interactive

8

Cayman Islands(1), Costa Rica(2), Hong Kong(2), Luxembourg(2), Netherlands(1)

Colorado

LifePoint Health

1

Tennessee

Limited Brands

1

Cayman Islands(1)

216

Ohio

Lincoln National

1

Barbados(1)

Pennsylvania


36 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Live Nation Entertainment

49

Cayman Islands(2), Hong Kong(4), Ireland(10), Isle of Man(3), Luxembourg(2),

Netherlands(26), Singapore(2)

477

California

LKQ

266

Illinois

Lockheed Martin

291

16%

55

Maryland

Loews

5

Bermuda(3), Cayman Islands(1), Channel Islands(1)

2,400

New York

Lowe's

112

North Carolina

Macy's

2

Hong Kong(2)

Ohio

Manpower

51

Costa Rica(2), Cyprus(1), Hong Kong(5), Ireland(4), Luxembourg(4), Macau(1), Monaco(1), Netherlands(23), Panama(2), Singapore(4), Switzerland(4)

733

Wisconsin

Marathon Oil

63

Bahamas(1), Barbados(1), Bermuda(2), Cayman Islands(43), Netherlands(15), Switzerland(1)

1,019

Texas

Marathon Petroleum

2

Bermuda(2)

Ohio

Marriott International

79

Anguilla(1), Aruba(1), Bahamas(1), Bahrain(1), Barbados(1), Bermuda(6), British Virgin Islands(7), Cayman Islands(10), Channel Islands(1), Costa Rica(1), Ireland(4), Jordan(2), Lebanon(1), Luxembourg(6), Malta(1), Netherlands(17), Panama(1), Singapore(4), St.

Kitts and Nevis(2), St. Lucia(1), Switzerland(6), Turks and Caicos(1), U.S. Virgin Islands(3)

894

Maryland

Marsh & McLennan

117

Aruba(1), Bahamas(1), Bahrain(1), Barbados(5), Bermuda(23), British Virgin Islands(1), Cayman

Islands(2), Channel Islands(3), Cyprus(2), Hong Kong(10), Ireland(17), Isle of Man(4), Jordan(1), Liechtenstein(1), Luxembourg(7), Macau(1), Malta(2), Mauritius(1), Netherlands(14), Panama(2), Singapore(9), Switzerland(9)

6,300

New York


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 37


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Masco

13

Bahamas(1), Cyprus(1), Hong Kong(1), Luxembourg(3), Netherlands(3), Singapore(2), Switzerland(2)

12

Michigan

MasterCard

5

Netherlands(1), Singapore(4)

3,300

New York

Mattel

9

Bermuda(2), Hong Kong(1), Netherlands(5), Singapore(1)

6,400

California

McDonald's

11

Hong Kong(1), Luxembourg(3), Netherlands(1), Singapore(2), Switzerland(4)

15,400

Illinois

McGraw-Hill

16

Cayman Islands(1), Hong Kong(2), Ireland(1), Luxembourg(4), Singapore(7), Switzerland(1)

1,239

New York

McKesson

3

Bermuda(2), Ireland(1)

4,916

California

MeadWestvaco

3

Luxembourg(2), Netherlands(1)

1,360

Virginia

Merck

121

Bermuda(10), Cayman Islands(1), Costa Rica(2), Cyprus(3), Hong Kong(3), Ireland(25), Lebanon(1), Luxembourg(1), Netherlands(42), Panama(5), Singapore(9), Switzerland(19)

60,000

New Jersey

MetLife

31

Bermuda(1), Cayman Islands(8), Cyprus(3), Hong Kong(4), Ireland(9),

Singapore(3), Switzerland(2),

U.S. Virgin Islands(1)

4,200

New York

MGM Resorts international

13

Cayman Islands(1), Hong Kong(7), Isle of Man(3), Macau(1), Singapore(1)

Nevada

Micron Technology

2

Netherlands(1), Singapore(1)

4,910

Idaho

Microsoft

5

Ireland(3), Luxembourg(1), Singapore(1)

108,300

3%

34,500

Washington

Mohawk Industries

28

Barbados(1), Hong Kong(2), Ireland(2), Luxembourg(12), Netherlands(7), Singapore(2), Switzerland(2)

1,385

Georgia

Mondel z International

82

Bahamas(1), Bahrain(2), Costa Rica(2), Cyprus(1), Hong Kong(2), Ireland(15), Lebanon(2), Luxembourg(3), Mauritius(1), Netherlands(27), Panama(1), Singapore(10), Switzerland(15)

13,200

Illinois


38 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Monsanto

6

British Virgin Islands(1), Luxembourg(1), Netherlands(3), Switzerland(1)

4,400

Missouri

Morgan Stanley

210

Bermuda(4), Cayman Islands(100), Channel Islands(10), Cyprus(2), Gibraltar(3), Hong Kong(12), Ireland(6), Luxembourg(36), Malta(1), Mauritius(5), Netherlands(21), Singapore(8), Switzerland(2)

7,364

24%

841

New York

Mosaic

8

Bahamas(1), Luxembourg(3), Netherlands(4)

2,200

Minnesota

Motorola Solutions

1,500

Illinois

MRC Global

8

British Virgin Islands(2), Hong Kong(1), Netherlands(3), Singapore(2)

231

Texas

Murphy Oil

24

Bahamas(23), Singapore(1)

6,045

24%

684

Arkansas

National oilwell Varco

76

Aruba(1), Bahrain(1), Barbados(2), Bermuda(1), British Virgin Islands(2), Cayman Islands(7), Channel Islands(1), Cyprus(1), Mauritius(2), Netherlands(38), Netherlands Antilles(1), Singapore(18), Switzerland(1)

5,874

Texas

Navistar International

1

Cayman Islands(1)

469

Illinois

NCR

36

Bahrain(2), Bermuda(6), Cayman Islands(1), Cyprus(4), Hong Kong(1), Ireland(4), Luxembourg(6), Macau(1), Netherlands(5), Panama(1), Singapore(3), Switzerland(2)

2,100

Georgia

NetApp

14

Bermuda(2), Cyprus(1), Hong Kong(2), Ireland(1),

Luxembourg(1), Netherlands(5), Singapore(1), Switzerland(1)

3,300

5%

1,000

California

Netflix

1

Luxembourg(1)

29

0%

10

California

Newell Rubbermaid

11

Cayman Islands(3), Hong Kong(1), Luxembourg(3), Netherlands(3), Switzerland(1)

602

Georgia

Newmont Mining

18

Bermuda(3), Channel Islands(1), Cyprus(2), Liberia(1), Netherlands(9), Switzerland(2)

Colorado


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 39


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

News Corp.

23

Cayman Islands(3), Hong Kong(6), Ireland(2), Luxembourg(4), Netherlands(3), Singapore(2), Switzerland(3)

3,500

New York

NextEra Energy

1

Cayman Islands(1)

Nike

52

Bermuda(3), Hong Kong(8), Netherlands(36), Panama(1), Singapore(3), Switzerland(1)

8,300

2.50%

2,700

Oregon

Norfolk Southern

1

Bermuda(1)

Virginia

NRG Energy

24

Bermuda(1), British Virgin Islands(2), Cayman Islands(5), Channel Islands(1), Hong Kong(1), Luxembourg(2), Netherlands(10), Netherlands Antilles(1), Switzerland(1)

New Jersey

Nucor

194

North Carolina

Occidental Petroleum

80

Bermuda(59), Cayman Islands(9), Hong Kong(1), Liberia(1), Malta(1), Netherlands(4), Panama(1), Singapore(2), Switzerland(2)

9,900

34%

140

Texas

Office Depot

26

Bermuda(2), Cayman Islands(1), Hong Kong(2), Ireland(3), Luxembourg(3), Netherlands(13), Switzerland(2)

416

Florida

Old Republic International

6

Bermuda(5), Cayman Islands(1)

Illinois

Omnicom Group

2

Hong Kong(1), Singapore(1)

1,800

New York

Oracle

5

Ireland(5)

38,000

4%

11,800

California

Oshkosh

15

Cayman Islands(1), Hong Kong(1), Mauritius(1), Netherlands(11), Singapore(1)

181

Wisconsin

Owens & Minor

12

Channel Islands(1), Hong Kong(1), Ireland(6), Netherlands(3), Switzerland(1)

32

Virginia

Owens Corning

17

Cayman Islands(2), Hong Kong(1), Netherlands(13), Singapore(1)

1,400

-2%

511

Ohio

Owens-Illinois

17

Bermuda(1), Hong Kong(5), Luxembourg(1), Mauritius(1), Netherlands(7), Singapore(1), Switzerland(1)

2,900

Ohio

Paccar

6

Netherlands(6)

4,100

25%

400

Washington

Packaging Corp. of America

5

Hong Kong(2), Luxembourg(2), Netherlands(1)

Illinois


40 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Parker Hannifin

26

Bermuda(3), Gibraltar(2), Hong Kong(1), Luxembourg(10), Netherlands(6), Singapore(2), Switzerland(2)

3,000

Ohio

Peabody Energy

17

Bermuda(1), British Virgin Islands(1), Gibraltar(6), Luxembourg(1), Netherlands(6), Singapore(2)

Missouri

Penske Automotive Group

711

Michigan

PepsiCo

132

Barbados(1), Bermuda(15), Cayman Islands(6), Costa Rica(2), Cyprus(13), Gibraltar(3), Hong Kong(9), Ireland(12), Jordan(1), Liechtenstein(1), Luxembourg(26), Mauritius(2), Netherlands(32), Panama(1), Singapore(2), Switzerland(6)

37,800

New York

Pfizer

151

Cayman Islands(1), Channel Islands(8), Costa Rica(3), Hong Kong(8),

Ireland(27), Luxembourg(38), Netherlands(52), Panama(4), Singapore(5), Switzerland(5)

74,000

New York

Philip Morris International

9

Netherlands(3), Switzerland(6)

New York

Phillips

17

Bermuda(4), Cayman Islands(7), Ireland(4), Singapore(1), Switzerland(1)

2,000

Texas

Phillips-Van Heusen

43

Barbados(1), British Virgin Islands(4), Cyprus(1), Hong Kong(8), Ireland(3), Luxembourg(1), Macau(1),

Netherlands(19), Netherlands Antilles(1), Singapore(1), Switzerland(3)

389

New York

Pioneer Natural Resources

5

Bahamas(1), Cayman Islands(4)

Texas

Plains GP Holdings

2

Luxembourg(2)

Texas

PNC Financial Services Group

77

4%

24

Pennsylvania

Polo Ralph Lauren

5

Hong Kong(1), Netherlands(3), Switzerland(1)

2,515

New York

PPG Industries

20

Bermuda(1), Hong Kong(2), Ireland(1), Luxembourg(2), Netherlands(10), Singapore(2), Switzerland(2)

5,000

31%

200

Pennsylvania

PPL

3,700

Pennsylvania


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 41

Company Tax Haven Subsidiaries

image

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash

State Located


Praxair

20

Bahrain(1), Costa Rica(1), Ireland(3), Luxembourg(4), Mauritius(1), Netherlands(3), Panama(1), Singapore(4), Switzerland(2)

10,400

Connecticut

Precision Castparts

15

Bermuda(1), Cayman Islands(2),

1,482

Oregon

Hong Kong(4), Ireland(1),

Luxembourg(4), Singapore(3)

Priceline.com

5

Mauritius(1), Netherlands(3),

7,300

Connecticut

Singapore(1)

Principal Financial

20

Cayman Islands(3), Hong

825

Iowa

Kong(9), Ireland(1), Malta(4),

Mauritius(1), Singapore(2)

Procter & Gamble

38

Costa Rica(1), Hong

45,000

Ohio

Kong(2), Ireland(1),

Lebanon(1), Luxembourg(4),

Netherlands(17), Panama(1),

Singapore(4), Switzerland(7)

Prudential Financial

39

Barbados(1), Bermuda(4),

2,396

New Jersey

British Virgin Islands(2), Cayman

Islands(13), Channel Islands(2),

Hong Kong(2), Ireland(1),

Luxembourg(11), Singapore(3)

Qualcomm

3

Singapore(3)

25,700

0%

9,100

California

Quanta Services

7

British Virgin Islands(3), Costa

345

Texas

Rica(1), Luxembourg(1),

Netherlands(1), Panama(1)

Quest Diagnostics

5

Ireland(1), Luxembourg(3),

New Jersey

Singapore(1)

Quintiles

20

Costa Rica(2), Hong Kong(1),

North Carolina

Ireland(2), Luxembourg(4),

Mauritius(2), Netherlands(3),

Panama(1), Singapore(2),

Switzerland(3)

R.R. Donnelley &

34

Barbados(1), British

Illinois

Sons

Virgin Islands(4), Cayman

Islands(3), Channel Islands(1),

Costa Rica(1), Cyprus(1),

Hong Kong(3), Ireland(4),

Luxembourg(1), Mauritius(1),

Netherlands(10), Singapore(2),

St. Lucia(1), Switzerland(1)

Raytheon

384

Massachusetts

Realogy Holdings

7

Bermuda(1), Hong Kong(3),

New Jersey

Netherlands(1), Singapore(1),

Switzerland(1)


42 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Reinsurance Group of America

10

Barbados(4), Bermuda(2), Ireland(1), Netherlands(2), Singapore(1)

1,115

Missouri

Reliance Steel & Aluminum

2

Singapore(2)

216

California

Republic Services

1

Cayman Islands(1)

Arizona

Reynolds American

7

Cayman Islands(1), Hong Kong(1), Netherlands(4), Switzerland(1)

25

North Carolina

Rock-Tenn

2

British Virgin Islands(2)

240

31%

9

Georgia

Rockwell Automation

5

Ireland(1), Netherlands(1), Singapore(2), Switzerland(1)

2,781

Wisconsin

Ryder System

14

Bermuda(1), British Virgin Islands(1), Hong Kong(2), Mauritius(1), Netherlands(6), Singapore(3)

658

Florida

Safeway

4

Bermuda(1), Hong Kong(1), Macau(1), U.S. Virgin Islands(1)

180

-1%

65

California

Salesforce.com

10

Hong Kong(1), Ireland(3), Luxembourg(1), Netherlands(1), Singapore(3), Switzerland(1)

California

SanDisk

7

Bermuda(1), Cayman Islands(1), Ireland(3), Netherlands(2)

969

California

Sanmina

15

British Virgin Islands(2), Cayman Islands(1), Hong Kong(5), Ireland(2), Mauritius(1), Netherlands(1), Singapore(3)

544

California

Seaboard

32

Bahamas(1), Bermuda(16), Cayman Islands(2), Costa Rica(1), Isle of Man(1), Liberia(2), Mauritius(6), Netherlands(1), Panama(1), Singapore(1)

1,000

Kansas

Sealed Air

49

Barbados(2), Cayman Islands(1), Costa Rica(2), Hong Kong(4), Ireland(4), Luxembourg(5), Netherlands(22), Singapore(2), Switzerland(7)

North Carolina

Sears Holdings

1

Bermuda(1)

Illinois

Sempra Energy

2

Netherlands(2)

3,600

California

Sherwin-Williams

9

Aruba(1), Belize(1), Cayman Islands(1), Hong Kong(1), Ireland(2), Luxembourg(2), Singapore(1)

4

20%

1

Ohio

Sonic Automotive

1

Cayman Islands(1)

North Carolina


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 43


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Southwest airlines

1

Bermuda(1)

Texas

Spectra Energy

2

Luxembourg(2)

1,800

Texas

Spirit AeroSystems Holdings

5

Netherlands(4), Singapore(1)

Kansas

St. Jude Medical

15

Costa Rica(1), Hong Kong(1), Luxembourg(5), Netherlands(4), Singapore(2), Switzerland(2)

4,200

Minnesota

Stanley Black & Decker

110

British Virgin Islands(4), Cayman Islands(8), Costa Rica(1), Hong Kong(16), Ireland(23), Liechtenstein(1), Luxembourg(17), Macau(1), Mauritius(1), Netherlands(20), Panama(4), Singapore(8), Switzerland(6)

4,773

Connecticut

Staples

35

Bermuda(1), Cayman Islands(4), Cyprus(2), Hong Kong(3), Ireland(2), Luxembourg(2), Netherlands(19), Switzerland(2)

835

Massachusetts

Starbucks

20

Cayman Islands(1), Costa Rica(1), Cyprus(1), Hong Kong(6), Luxembourg(1), Netherlands(6), Singapore(2), Switzerland(2)

2,200

Washington

Starwood Hotels & Resorts

4

Luxembourg(3), Singapore(1)

3,500

Connecticut

State Street Corp.

4

Cayman Islands(1), Ireland(1), Luxembourg(1), Switzerland(1)

4,200

14%

876

Massachusetts

Stryker

47

Barbados(1), British Virgin Islands(1), Cayman Islands(1), Hong Kong(6), Ireland(7), Lebanon(1),

Luxembourg(2), Mauritius(1), Netherlands(18), Panama(1), Singapore(1), Switzerland(7)

5,878

Michigan

Supervalu

3

Bermuda(3)

Minnesota

Symantec

4

Ireland(3), Singapore(1)

3,600

7%

1,000

California

Synnex

4

Bermuda(1), British Virgin Islands(1), Netherlands(2)

321

California

Sysco

30

Bahamas(3), Bermuda(1), Cayman Islands (5), Costa Rica(6), Hong Kong(4), Ireland(6), Luxembourg(3), Netherlands(2)

1,100

Texas

Target

1

Luxembourg(1)

328

Minnesota


44 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

Tech Data

13

Cayman Islands(2), Costa Rica(1), Ireland(1),

Luxembourg(2), Netherlands(5), Switzerland(2)

500

Florida

Tenneco

7

Hong Kong(1), Luxembourg(2), Mauritius(3), Netherlands(1)

737

19%

121

Illinois

Terex

17

Bermuda(1), British Virgin Islands(1), Cayman Islands(2), Ireland(2), Mauritius(1), Netherlands(6), Singapore(2), Switzerland(2)

800

Connecticut

Texas Instruments

13

Hong Kong(5), Ireland(2), Luxembourg(2), Netherlands(2), Singapore(2)

7,670

Texas

Textron

9

Barbados(1), Bermuda(1), Netherlands(3), Singapore(3), Switzerland(1)

995

Rhode Island

Thermo Fisher Scientific

155

Barbados(4), Bermuda(4), British Virgin Islands(1), Cayman Islands(12), Channel Islands(1), Costa Rica(1), Gibraltar(2), Hong Kong(12), Ireland(7), Luxembourg(24), Malta(6), Netherlands(53), Singapore(10), Switzerland(18)

8,440

Massachusetts

Time Warner

8

Netherlands(6), Singapore(1), Switzerland(1)

1,100

New York

TJX

5

Bermuda(2), Hong Kong(1), Ireland(1), Netherlands(1)

567

Massachusetts

Toys "R" Us

14

British Virgin Islands(7), Hong Kong(3), Netherlands(2), Singapore(1), Switzerland(1)

1

35%

0

New Jersey

Travelers Cos.

2

Bermuda(1), Singapore(1)

647

New York

Trinity Industries

2

Switzerland(2)

Texas

TRW Automotive Holdings

11

Cayman Islands(1), Channel Islands(1), Luxembourg(2), Mauritius(1), Netherlands(4), Singapore(1), Switzerland(1)

3,400

Michigan

Twenty-First Century Fox

2

Netherlands(2)

975

New York

Tyson Foods

18

Bermuda(2), British Virgin Islands(1), Cayman Islands(1), Hong Kong(3), Luxembourg(4), Mauritius(1), Netherlands(6)

403

Arkansas

U.S. Bancorp

10

Cayman Islands(1), Hong Kong(1), Ireland(5), Netherlands(2), Singapore(1)

Minnesota


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 45


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

UGI

4

Luxembourg(1), Netherlands(2), Switzerland(1)

43

35%

0

Pennsylvania

United Natural Foods

14

Rhode Island

United Parcel Service

3

Netherlands(1), Singapore(1),

U.S. Virgin Islands(1)

4,683

Georgia

United Rentals

595

Connecticut

United States Steel

2

Netherlands(2)

5

Pennsylvania

United Stationers

2

Hong Kong(2)

Illinois

United Technologies

28

Cayman Islands(1), Gibraltar(1), Hong Kong(4), Ireland(2), Luxembourg(8), Netherlands(8), Singapore(1), Switzerland(3)

28,000

Connecticut

UnitedHealth Group

17

Bermuda(1), Cayman Islands(3), Hong Kong(1), Ireland(1), Luxembourg(6), Netherlands(4), Singapore(1)

391

Minnesota

Universal Health Services

10

-5%

4

Pennsylvania

Unum Group

1

Ireland(1)

1,000

Tennessee

Valero Energy

15

Aruba(5), British Virgin Islands(3), Cayman Islands(2), Ireland(2), Luxembourg(1), Netherlands(2)

2,900

Texas

Verizon Communications

1,300

New York

VF

25

Cayman Islands(1), Gibraltar(2), Hong Kong(3), Luxembourg(12), Mauritius(1), Netherlands(1), Singapore(1), Switzerland(4)

3,297

North Carolina

Viacom

39

Bahamas(1), Barbados(1), Cayman Islands(7), Channel Islands(1), Hong Kong(2), Mauritius(1), Netherlands(24), Singapore(1), Switzerland(1)

2,500

18%

438

New York

Visa

1

Singapore(1)

5,000

California

Visteon

11

Bermuda(2), British Virgin Islands(1), Hong Kong(4), Netherlands(4)

245

Michigan

Voya Financial

7

Bermuda(2), Cayman Islands(1), Hong Kong(2), Ireland(1), Luxembourg(1)

New York

W.R. Berkley

1

Bermuda(1)

58

30%

3

Connecticut


46 Offshore Shell Games 2015



Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

W.W. Grainger

21

Costa Rica(1), Mauritius(1), Netherlands(15), Netherlands Antilles(1), Panama(2), Singapore(1)

464

Illinois

Walgreens

14

Bermuda(1), Cayman Islands(1), Hong Kong(1), Luxembourg(6), Mauritius(1), Switzerland(3),

U.S. Virgin Islands(1)

Illinois

Wal-Mart Stores

75

Barbados(1), British Virgin Islands(12), Cayman Islands(4), Cyprus(1), Gibraltar(1),

Hong Kong(13), Ireland(1), Luxembourg(22), Mauritius(5), Netherlands(5), Panama(2), Singapore(4), Switzerland(4)

23,300

Arkansas

Walt Disney

7

Hong Kong(1), Luxembourg(2), Netherlands(3), Singapore(1)

1,900

15%

377

California

Waste Management

2

Hong Kong(2)

750

Texas

WellCare Health Plans

1

Cayman Islands(1)

Florida

Wellpoint

3

Ireland(3)

Indiana

Wells Fargo

98

Aruba(1), Bahamas(2), Barbados(1), Bermuda(5), British Virgin Islands(3), Cayman Islands(36), Costa Rica(1),

Hong Kong(6), Ireland(4), Luxembourg(23), Mauritius(7), Netherlands(6), Singapore(3)

1,800

6%

513

California

WESCO

International

11

Hong Kong(1), Netherlands(8), Singapore(2)

597

Pennsylvania

Western Digital

17

Bermuda(1), Cayman Islands(6), Hong Kong(2), Ireland(1), Netherlands(2), Singapore(5)

9,400

2%

3,100

California

Western Union

44

Barbados(1), Bermuda(14), Costa Rica(1), Hong Kong(2), Ireland(12), Luxembourg(4), Malta(3), Panama(2), Singapore(4), Switzerland(1)

7,500

Colorado

Weyerhaeuser

5

Barbados(2), British Virgin Islands(1), Hong Kong(2)

27

Washington

WhirlPool

37

Bermuda(2), British Virgin Islands(1), Hong Kong(4), Ireland(3), Luxembourg(13), Mauritius(1), Netherlands(6), Netherlands Antilles(1), Singapore(2), Switzerland(4)

4,900

Michigan

Williams

12

Bermuda(1), Cayman Islands(8), Netherlands(3)

Oklahoma


Appendix: Offshore Profits and Tax Haven Subsidiaries of Fortune 500 Companies 47


Company


Tax Haven Subsidiaries

Location of Tax Haven Subsidiaries

Amount Held Offshore

($ millions)

Tax Rate Paid on Offshore Cash

Estimated U.S. Tax Bill on Offshore Cash


State Located

World Fuel Services

37

Bahamas(1), British Virgin Islands(1), Cayman Islands(4), Costa Rica(8), Gibraltar(2), Hong Kong(1), Ireland(2), Luxembourg(2), Netherlands(10), Panama(2), Singapore(3), Switzerland(1)

1,300

Florida

Wyndham Worldwide

1

Netherlands(1)

New Jersey

Wynn Resorts

14

Cayman Islands(4), Hong Kong(1), Isle of Man(5), Macau(4)

412

0%

144

Nevada

Xerox

51

Barbados(4), Bermuda(8), Channel Islands(1), Cyprus(1), Hong Kong(3), Ireland(6), Luxembourg(3), Malta(1), Mauritius(1),

Netherlands(15), Singapore(2), St. Lucia(1), Switzerland(4), Turks and Caicos(1)

8,500

Connecticut

Yum Brands

70

Bahrain(1), British Virgin Islands(2), Cayman Islands(2), Cyprus(1), Hong Kong(10), Luxembourg(33), Macau(1), Malta(6), Netherlands(6), Singapore(7), Switzerland(1)

2,000

Kentucky


48 Offshore Shell Games 2015



image


Endnotes


shore-funds-not-trapped-abroad-nearly-half-of-so-called- offshore-funds-already-in-the-united-states/.


  1. Kate Linebaugh, “Firms Keep Stockpiles of ‘Foreign’ Cash in U.S.,” Wall Street Journal, 22 January 2013, http://on- line.wsj.com/article/SB1000142412788732328410457825 5663224471212.html.


  2. Kimberly A. Clausing, “The Revenue Effects of Multina- tional Firm Income Shifting,” Tax Notes, 28 March 2011, 1560-1566.

1

Government Accountability Office, Business and Tax Ad- vantages Attract U.S. Persons and Enforcement Challenges Ex- ist, GAO-08-778, a report to the Chairman and Ranking

11

Dan Smith and Jaimie Woo. Picking up the Tab, U.S. PIRG, April 2015. http://www.uspirg.org/reports/usp/picking- tab-2015-small-businesses-pay-price-offshore-tax-havens.

Member, Committee on Finance, U.S. Senate, July 2008, http://www.gao.gov/highlights/d08778high.pdf.


12


“China to Become World’s Second Largest Consumer

Market”, Proactive Investors United Kingdom, 19 January,

2

Id.

2011 (Discussing a report released by Boston Consulting

Group), http://www.proactiveinvestors.co.uk/columns/

3

Organisation for Economic Co-operation and Devel-

china-weekly-bulletin/4321/china-to-become-worlds-sec-

opment, “Harmful Tax Competition: An Emerging

ond-largest-consumer-market-4321.html.

Global Issue,” 1998. http://www.oecd.org/tax/transpar-

ency/44430243.pdf

13

The number of subsidiaries registered in tax havens is cal-

culated by authors looking at exhibit 21 of the company’s

4

Government Accountability Office, International Taxation;

2013 10-K report filed annually with the Securities and Ex-

Large U.S. Corporations and Federal Contractors with Subsid-

change Commission. The list of tax havens comes from the

iaries in Jurisdictions Listed as Tax Havens or Financial Privacy

Government Accountability Office report cited in note 5.

Jurisdictions, December 2008.

14

Calculated by the authors based on revenue information

5

Mark P. Keightley, Congressional Research Service, An

from Pfizer’s 2014 10-K filing.

Analysis of Where American Companies Report Profits: Indica-

tions of Profit Shifting, 18 January, 2013.

15

Audit Analytics, “Untaxed Foreign Earnings top $2.3 Tril-

lion in 2014,” April 2015. http://www.auditanalytics.com/

6

Citizens for Tax Justice, American Corporations Report Over

blog/untaxed-foreign-earnings-top-2-3-trillion-in-2014/.

Half of Their Offshore Profits as Earned in 12 Tax Havens, 28

May 2014.

16

See note 6.

7

Kitty Richards and John Craig, Offshore Corporate Prof-

17

Kimberly A. Clausing, “Multinational Firm Tax Avoidance

its: The Only Thing ‘Trapped’ Is Tax Revenue, Center for

and Tax policy,” 62 Nat’l Tax J 703, December 2009; see

American Progress, 9 January, 2014, http://www.american-

note 10 for more recent study.

progress.org/issues/tax-reform/report/2014/01/09/81681/ offshore-corporate-profits-the-only-thing-trapped-is-tax-


18


Citizens for Tax Justice, “Apple is not Alone” 2 June 2013,

revenue/.

http://ctj.org/ctjreports/2013/06/apple_is_not_alone.

php#.UeXKWm3FmH8.

8

Offshore Funds Located On Shore, Majority Staff Report Ad- dendum, Senate Permanent Subcommittee on Investiga-


19


See methodology for an explanation of how this was calcu-

tions, 14 December 2011, http://www.levin.senate.gov/

lated.

newsroom/press/release/new-data-show-corporate-off-

20 Companies get a credit for taxes paid to foreign govern- ments when they repatriate foreign earnings. Therefore, if companies disclose what their hypothetical tax bill would be if they repatriated “permanently reinvested” earnings, it is possible to deduce what they are currently paying to foreign governments. For example, if a company discloses that they would need to pay the full statutory 35% tax rate on its offshore cash, it implies that they are currently pay- ing no taxes to foreign governments, which would entitle them to a tax credit that would reduce the 35% rate. This method of calculating foreign tax rates was original used by Citizens for Tax Justice (see note 21).


Endnotes 49


  1. Citizens for Tax Justice, “Nike’s Tax Haven Subsidiaries Are Named After Its Shoe Brands,” 25 July 2013, http:// www.ctj.org/taxjusticedigest/archive/2013/07/nikes_tax_ haven_subsidiaries_a.php#.U3y0Gijze2J.


  2. Citizens for Tax Justice, “The Problem of Corporate In- versions: the Right and Wrong Approaches for Congress,” 14 May 2014, http://ctj.org/ctjreports/2014/05/the_prob- lem_of_corporate_inversions_the_right_and_wrong_ap- proaches_for_congress.php#.U3tavSjze2J.


  3. Other consequences kick in for inversions involving 60- 79.9% of the same shareholders. This law is based on a 2002 bill introduced by Senator Charles Grassley (R-IA) and former Sen. Max Baucus (D-MT). See 26 U.S.C.§7874 (available at http://codes.lp.findlaw.com/uscode/26/ F/80/C/7874/).


  4. Treasury first defined “substantial business” in 2006 with a relatively loose bright line standard. That 2006 standard was replaced in 2009 with a vague facts and circumstances test and an intent to make inverting harder. Companies got comfortable with that approach too, however, and resumed inverting. On June 7, 2012, Treasury issued new tempo- rary rules creating a difficult-to-evade bright line test. Specifically, the new rules define substantial business as a minimum of 25 percent of an inverting company’s business. That is a hard threshold to meet if the main “business” in country is a post office box. But the rules go further by making the standard hard to game; the 25 percent has to be met in three different ways. Moreover, those measure- ments must be taken a year before the inversion, so the inversion process itself cannot be manipulated to meet the thresholds. For a more detailed discussion of the his- tory of the interpretations, see Latham & Watkins Client Alert No. 1349, “IRS Tightens Rules on Corporate Ex- patriations — New Regulations Require High Threshold of Foreign Business Activity” June 12, 2012, http://www. google.com/url?sa=t&rct=j&q=&esrc=s&source=web&c d=14&ved=0CFsQFjADOAo&url=http%3A%2F%2Fw ww.lw.com%2FthoughtLeadership%2FIRSTightensRules onCorporateExpatriations&ei=fPYmUIe-Dca36gG5q4GI Cg&usg=AFQjCNEMzRNjJYwoJtmyd4VJF-Dnap_hxA.


  5. Citizens for Tax Justice, “The Problem of Corporate In- versions: the Right and Wrong Approaches for Congress,” 14 May 2014. http://ctj.org/ctjreports/2014/05/the_prob- lem_of_corporate_inversions_the_right_and_wrong_ap- proaches_for_congress.php#.U3tavSjze2J.


  6. Zachary R. Mider, “Tax Break ‘Blarney’: U.S. Companies Beat the System with Irish Addresses,” Bloomberg News,

    5 May 2014, http://www.bloomberg.com/news/2014- 05-04/u-s-firms-with-irish-addresses-criticized- for-the-moves.html.


  7. Jeffrey Gramlich and Janie Whiteaker-Poe, “Disappear- ing subsidiaries: The Cases of Google and Oracle,” March 2013, Working Paper available at SSRN, http://papers. ssrn.com/sol3/papers.cfm?abstract_id=2229576.

  8. Offshore Profit Shifting and the U.S. Tax Code — Part 2,Sen- ate Permanent Subcommittee on Investigations, 21 May, 2013, http://www.hsgac.senate.gov/subcommittees/inves- tigations/hearings/offshore-profit-shifting-and-the-us- tax-code_-part-2.


  9. Americans for Tax Fairness, “The Walmart Web,” 17 June 2015. http://www.americansfortaxfairness.org/files/ TheWalmartWeb-June-2015-FINAL.pdf


  10. See note 27.


  11. Jesse Drucker, “Google Joins Apple Avoiding Taxes with Stateless Income,” Bloomberg News, 22 May 2013, http:// www.bloomberg.com/news/2013-05-22/google-joins-ap- ple-avoiding-taxes-with-stateless-income.html.


  12. See note 14.


  13. Estimate includes both the cost of “Deferral of income from controlled foreign corporations” and to “Extend the exception under subpart F for active financing income.” “Office of Management and Budget, “Fiscal Year Analytical Perspectives of the U.S. Government,” 2015. https://www. whitehouse.gov/sites/default/files/omb/budget/fy2016/as- sets/spec.pdf


  14. Listed as “Deduction for dividends received by domestic corporations from certain foreign corporations.” Joint Committee on Taxation, “Estimated Revenue Effects of the “Tax Reform Act of 2014,” February 26, 2014, https:// www.jct.gov/publications.html?func=startdown&id=4562. JCT estimated that the cost of a territorial system would be $212 billion over a decade if the U.S. corporate tax rate were reduced to 25%. That translates to a cost of $297 bil- lion under the current 35% tax rate.


  15. Citizens for Tax Justice, “A Patent Box Would Be a Huge Step Back for Corporate Tax Reform,” June, 4, 2015. http://ctj.org/pdf/patentboxstepback.pdf


  16. OECD, “BEPS 2015 Final Reports,” October 5, 2015. http://www.oecd.org/tax/beps-2015-final-reports.htm


  17. Citizens for Tax Justice, “Proposals to Resolves the Crisis of Corporate Inversions,” August 21, 014. http://ctj.org/ pdf/inversionsproblemsandsolutions.pdf


  18. Joint Committee on Taxation, “Estimated Budget Effects of the Revenue Provisions Contained in the President’s Fiscal Year 2015 Budget Proposal,” April 15, 2014, https:// www.jct.gov/publications.html?func=startdown&id=4585.


  19. Id.


  20. Id.


  21. Cited in Tom Bergin, “CEOs back country-by-country tax reporting — survey,” Reuters, 23 April 2014. http:// uk.reuters.com/article/2014/04/23/uk-taxcompanies- idUKBREA3M18I20140423.


50 Offshore Shell Games 2015