This article describes the growing exodus of domestically conceived or originated companies moving their existence or taxable operations to foreign countries for tax advantage purposes. It also briefly suggests some areas for improvement, and not surprisingly a lowering of the current approximate 35% corporate tax rate is one of the suggestions.
It is estimated that companies are storing wealth offshore, worldwide in an amount of approximately 2.1 trillion dollars and refusing to repatriate that wealth because of the high corporate tax rate imposed upon repatriation. The source of the impediment is clear as in 2005 when the feds declared a tax holiday on repatriated funds companies brought approximately $359 billion back home to the U.S. Current corporate tax policy is clearly limiting the amount of wealth held in the U.S. and because the wealth sits in foreign jurisdictions indefinitely the U.S. receives no benefit at all from the money. A lowering of the corporate tax rate would prompt repatriation and increase tax potential of income on the approximate 2.1 trillion dollars overseas which sits currently at $0.00. A lower corporate tax rate may also stop the exodus before it begins.
About Five Stone Tax Advisers
Five Stone Tax Advisers has years of experience negotiating directly with the IRS to get the best possible outcome for you. Our International Tax Advisory and Compliance unit has a team of tax attorneys, certified public accountants and enrolled agents that form a single sourced point of contact that will provide services for all the legal, compliance and financial reconstruction aspects of offshore account cases.
