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The U.S. Internal Revenue Service is auditing how Google Inc. (GOOG) avoided federal income taxes by shifting profit into offshore subsidiaries, according to a person with knowledge of the matter.
The agency is bringing more than typical scrutiny to how the company valued software rights and other intellectual property it licensed abroad, said the person, who requested anonymity because the audit isn’t public. The IRS has requested information from Google about its offshore deals after three acquisitions, including its $1.65 billion purchase of YouTube, the person said. The transfer overseas of these kinds of rights has enabled Google to attribute earnings to foreign units that pay lower taxes, Bloomberg News reported a year ago.
Why is Google the scapegoat here ?
Many corporations are doing that and our stupid laws and tax structure allow it.
^^^This!^^^
Yet Democrats block attempt to fix this in such a manner that cash can be repatriated without heavy penalties so that we have a chance to bring some manufacturing back to US soil. Apple, would be yet another example but only one of dozens of meg-corporations doing the very same.
How about that Government Electric and Obama's job czar Immelt?!
No mention of GE though..guess they are "off limits".
http://www.nytimes.com/2011/06/20/bu...pagewanted=all
Some of the nation’s largest corporations have amassed vast profits outside the country and are pressing Congress and the Obama administration for a tax break to bring the money home.
Apple has $12 billion waiting offshore, Google has $17 billion and Microsoft, $29 billion.
Yet Democrats block attempt to fix this in such a manner that cash can be repatriated without heavy penalties so that we have a chance to bring some manufacturing back to US soil. Apple, would be yet another example but only one of dozens of meg-corporations doing the very same.
How about that Government Electric and Obama's job czar Immelt?!
They wouldn't come back here with mfg. jobs anyways. They may bring it back and to research with it but they move mfg. overseas because they wanted it closer to emerging markets, materials and demand.
Don't assume the IRS will win. The company I worked for got audited ..... big article in the Wall Street Journal about the audit. Anyway ... result of the audit ... we had paid too much tax and the IRS had to refund us millions. No article in the WSJ about the refund, however.
Don't assume the IRS will win. The company I worked for got audited ..... big article in the Wall Street Journal about the audit. Anyway ... result of the audit ... we had paid too much tax and the IRS had to refund us millions. No article in the WSJ about the refund, however.
They won't. These multi-nationals did nothing illegal.
The business structure and tax structure allow for it.
— You can’t swing a dead cat video in Washington lately without hitting a lobbyist, consultant, attorney or adviser on retainer to Google or one of its tech rivals. Google, whose top executives have long been a bottomless cup of campaign coffee for Democrats, is finally entering its bipartisan phase, theatrically hiring Republican operatives and broadcasting the news through insider Washington publications, pumping air into a K Street tech bubble.
The shift in political strategy comes as Google faces a serious antitrust threat, punctuated by a high-profile hearing on the company held Wednesday afternoon in the Senate. But Google’s investment in the infrastructure of the conservative movement goes much deeper than what’s been reported this summer.
It is amazing how arbitrary and unfair it is to have the world's highest corporate income tax rate. Although this state of affairs predates the Obama job-killing machine, it is certainly an important factor in our current lousy economy.
The most pathetic aspect of it is this: instead of acknowledging that we penalize American companies for hiring Americans in America, the populist-in-chief refers to the situation as "tax breaks to American companies for shipping jobs overseas." He is either every bit as cynical as Richard Nixon or as clueless as Jimmy Carter.
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