Offshore tax rules under the microscope

Apple, Microsoft, Pfizer and Merck are just some of the U.S. companies with a reputation for keeping cash offshore to save on tax, reports the Financial Times.

Companies who keep the majority of their money outside America have lowered their tax bills by an average of 25%.

Read: IRS to give expats a break

But the lawmakers and investors are pushing back—albeit for different reasons. U.S. policy analysts have warned Congress that companies are borrowing money for expenses rather than brining than bringing their own cash home. And FT says investors are concerned that much of these multinational companies’ increased profits come from lowering their tax bills—not from innovation.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.