Inventive_Evasion

Inventive Evasion If paying taxes were optional, most people would choose not to pay. Especially, if one could save millions of dollars. Most people also know that in doing so they would have to face stiff consequences including heavy fines and possible jail time. Several American multinational corporations have found a way to decrease and in some cases eliminate their taxes without the stiff penalties. These corporations do so by taking advantage of overseas tax havens. To use a tax haven, a company will move the address of its headquarters to a country, like Barbados, where it can save a lot of money by avoiding payment of American taxes. The companies then shift their profits from the United States to the low-tax or tax-free country by making interest, royalty and other miscellaneous expense payments to it. Eventually all of the taxable income becomes tax deductible. One of the most recent and widely publicized companies to do this has been Stanley Works. They moved their legal headquarters from Connecticut to Bermuda, but still run their company from the United States. By their estimates they will save approximately 25-32 million dollars in taxes by becoming a Bermuda taxes, tax, american, companies, foreign, company, save, paying, one, headquarters, havens, dollars, competitive, united, stiff, states, stanley, shift, several, proposals, profit, people, pay, multinationals, million, introduced, income, house, government, expense, even, country, corporations, contracts, come