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Thread: GE: 7,000 tax returns, $0 U.S. tax bill

  1. #31
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by American View Post
    Why doesn't this happen to me?
    You're not a mega-rich corporation with ties to washington and the money to buy it.
    You know the time is right to take control, we gotta take offense against the status quo

    Quote Originally Posted by A. de Tocqueville
    "I should have loved freedom, I believe, at all times, but in the time in which we live I am ready to worship it."

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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Kelzie View Post
    I don't see anything wrong with it. They didn't make any money here to tax.
    Then what are they doing in business here in the US? HOW are they remaining in business? WHY are they remaining in business in the US?

    When you figure out their scheme you'll be able to answer those questions.

    The General Accounting Office report, commissioned by Senators Carl Levin (D-MI) and Byron Dorgan (D-ND) and released April 5, gave a clue to how. It's called "transfer pricing," or improperly shifting income to lower-tax countries.

    Firms set up offshore "subsidiaries" which, on their books, perform functions that let them cut onshore taxes. They may sell their own "logo" to the subsidiary and then pay a high price to "rent" it back, deducting "rent" as expense. They may move money to the subsidiary and "borrow" it back, deducting interest payments. If several of their subsidiaries are involved in a deal, the firms may grossly inflate profits assigned to those in offshore tax havens, which levy no or minimal taxes on "profits" claimed there.

    The U.S. firm may "trade" with an offshore "shell" it owns -- a phony company set up in a tax haven -- pretending it's buying goods or services at a high price or selling its product low, to create deductions. Because the tax haven keeps owners' names secret, the IRS won't know the company is "trading" with itself.
    Corporate Tax Evasion via Offshore Subsidiaries

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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Taylor View Post
    Which is probably why so much of their business is overseas to begin with.
    Actually, it's only small businesses that pay that rate. Once your corp. produces enough profit to hire the big time lawyers and accountants, THEN they get to reduce their tax bill.

  4. #34
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by NoJingoLingo View Post
    Then what are they doing in business here in the US? HOW are they remaining in business? WHY are they remaining in business in the US?

    When you figure out their scheme you'll be able to answer those questions.
    Not sure if you've been following the news, but GE's fallen on some hard times. It happens to corporations, just like people. They can still remain in business though.
    be humble for you are made of earth; be noble for you are made of stars

    Serbian proverb

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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by jacksbrat View Post
    I've always wondered how people could argue out of one side of their mouth that the price of an item is set by supply and demand, and then turn around and say out the other side of their mouth that you can't tax businesses because they just pass the cost onto the consumer? Isn't that a contradiction? Either supply and demand sets the price, or the company sets the price where he wants. If he can pass along the cost of taxes, can't he just as well pass along executive bonuses, or country club memberships? Why stop with taxes? Anything but a pay raise for their workers that make the product. The way I see it, rich men write tax laws, therefore tax laws favor the rich.
    You're 100% right.

    The other thing that I find interesting is that the people who take the corporations side are generally the same people who run their yap about patriotism. Yet they don't seem to find it very unpatriotic when corps. avoid paying their taxes and moving jobs offshore. Both of which damage our country in lost wages and taxes.

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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Kelzie View Post
    Not sure if you've been following the news, but GE's fallen on some hard times. It happens to corporations, just like people. They can still remain in business though.
    It's not, falling on hard times that's doing it for them.
    GE, Exxon Paid No Taxes in '09

    Itís GE Capital that keeps the overall tax bill so low. Over the last two years, GE Capital has displayed an uncanny ability to lose lots of money in the U.S. (posting a $6.5 billion loss in 2009), and make lots of money overseas (a $4.3 billion gain). Not only do the U.S. losses balance out the overseas gains, but GE can defer taxes on that overseas income indefinitely. The timing of big deductions for depreciation in GE Capitalís equipment leasing business also provides a tax benefit, as will loan losses left over from the credit crunch.
    http://politisite.com/2010/04/12/gen...taxes-in-2009/

  7. #37
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by NoJingoLingo View Post
    It's not, falling on hard times that's doing it for them.
    GE, Exxon Paid No Taxes in '09
    Yeah...pretty sure times were hard in 2009 too. Tell me, did they make a profit in the US in say, 2002?
    be humble for you are made of earth; be noble for you are made of stars

    Serbian proverb

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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Kelzie View Post
    Yeah...pretty sure times were hard in 2009 too. Tell me, did they make a profit in the US in say, 2002?
    I don't know, did they? Post their profitability for 2002 and what their tax bill was.

  9. #39
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Kelzie View Post
    What is this "FAR?" I haven't heard of it.
    There's audit, regulation, financial accounting and reporting and BEC. Financial Accounting and Reporting is short named as FAR. IMO, FAR was the worst section of the exam.

    I enjoyed the SAT. Not as much as I enjoyed the GMAT, but I like testing. I have this ego problem...
    SAT is more of a potential exam, where the CPA is almost entirely knowledge.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

  10. #40
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by NoJingoLingo View Post
    Then what are they doing in business here in the US? HOW are they remaining in business? WHY are they remaining in business in the US?

    When you figure out their scheme you'll be able to answer those questions.
    Eh, It's nowhere as bad was it was. Exxon used to have this scheme where it would extract the oil overseas, sell it to a Cayman subsidiary for ridiculous prices, take the tax there (which is low) and then have the subsidiary sell it to its refiners in the US at high cost. Refining had barely any profits on it while extraction I think hit triple digits. They cracked down on that a while back.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

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