While it is true that the spotlight is now turned to Apple Inc. for its extremely apparent offshore tax practices, the company is not actually alone in this serious problem. A new report has found that there are a lot of other major American companies implementing the same strategies so that they can avoid having to pay taxes on the billions of dollars that they generate as profits.
The report says that there are at least 18 other big American companies that use offshore bank accounts to store their revenues. Those that are not included in this list are Hewlett-Packard, eBay Inc., Wal-Mart Stores Inc., Devon Energy Corporation, Nike, and plenty of others.
The most plausible reason why these organizations practice this is to avoid spending a huge chunk of their earnings on taxes. If they did store all of their profits in the U.S., they would have to pay more than $92 billion combined. So if you are wondering who the nine other biggest American companies with the most money offshore are, prepare yourself as you may just have products from these organizations.
10 Dell Inc.
Dell Inc., which was formerly known as Dell Computer, is one of the largest companies based in America. This multinational company is involved in the development and the manufacturing of computer technology. Aside from selling these products, it also provides repair and support services for computers and other related products. Dell Inc. generates an income of more than $19 million, but only $3.4 million of this is taxed. The rest are stashed in the company’s offshore accounts.
9 QUALCOMM Incorporated
QUALCOMM Incorporated is an American company involved in the design, manufacture, and marketing of digital wireless telecommunications services and products. Its headquarters can be found in the city of San Diego, California, but it has locations in more than 150 different countries and territories all over the world. With all the unrepatriated income of the company which amounts to $16.4 million, it is surprising to know that it only pays taxes for $5.8 million worth of income. This means that the implied tax rate on the total revenues of QUALCOMM Incorporated is only 35%.
8 Oracle Corporation
The Oracle Corporation is a U.S. multinational corporation involved in computer technology. Its headquarters is found in Redwood City, California. The company develops and markets computer hardware systems as well as a number of enterprise software applications. After Microsoft and IBM, Oracle is the third largest maker of software in terms of revenue. The unrepatriated income of the Oracle Corporation amounts to $20.9 million, but only 30% is its implied tax rate.
7 The Coca-Cola Company
Headquartered in Atlanta, Georgia, The Coco-Cola Company has long since been a household name. This multinational beverage corporation is a manufacturer, a retailer, and a marketer of non-alcoholic, carbonated drinks including syrups and concentrates. It is best known for Coca-Cola, which is its flagship product. Nowadays, the corporation produces more than 500 brands of products in over 200 different territories and countries. The Coca-Cola Company is reported to have an unrepatriated income of $26.9 million.
6 Google Inc.
Google Inc. is a multinational corporation founded in Menlo Park, California, but the headquarters is located in Mountain View, California. This corporation specializes in services and products related to the Internet, including search, software, online advertising technologies, as well as cloud computing. A great percentage of the profits that the company makes are from AdWords. It is said that the unrepatriated income of the company is $33.3 million. Google is considered as a ‘Non-Disclosing’ company that has a large stash of money in offshore accounts.
5 Johnson & Johnson
Johnson & Johnson is a United States multinational pharmaceutical, consumer packaged goods, and medical devices manufacturer headquartered in New Brunswick, New Jersey. The company is listed in the Fortune 500. The corporation handles and owns about 250 subsidiaries and operates in more than 50 countries worldwide. Its products are being sold and marketed to more than 175 countries. Many of the company’s products are already household names, with them being first aid supplies and medications. It is said to have a total of $49 million unrepatriated income.
4 Microsoft Corporation
Microsoft Corporation is a U.S. multinational software corporation and its main office can be found in Redmond, Washington. The company specializes in the development, manufacture, licensing, and support of an extensive range of services and products related to computing. The company’s unrepatriated income is said to be $60.8 million.
3 Pfizer Inc.
Pfizer Inc. is a multinational pharmaceutical corporation and its headquarters lies in Groton, Connecticut. It is one of the largest pharmaceutical companies in the world in terms of revenues. The corporation develops, manufactures, and produces vaccines and medications for a wide range of health conditions, including those for immunology, inflammation, cardiovascular, metabolic, pain, neuroscience, and oncology departments. It is said that the total unrepatriated income of the corporation is approximately $73 million. Pfizer Inc. has subsidiaries in many different locations, including Ireland, Singapore, Luxembourg, the Isle of Jersey, Bermuda, and the Cayman Islands, all of which are tax havens.
2 General Electric Company
The General Electric Company, also more popularly known as GE, is a multinational conglomerate corporation involved in the development of products and services in Energy, Capital Finance, Consumer & Individual, as well as in Technology Infrastructure. The company disclosed that it is currently holding more than $108 million in various offshore accounts by the end of the year 2012. The company has subsidiaries in Bermuda, Singapore, Ireland, and the Bahamas. However, the corporation decided not to disclose any information on how much of its offshore accounts are stored in these areas.
1 Apple Inc.
Apple Inc. gets the number one spot on this list of the 10 biggest American companies with the most money offshore after it has been revealed that it only paid two percent in taxes out of its total profits amounting to U.S. $74 billion. This American multinational company involved in the design, development of computer software, personal computers, and consumer electronics came under fire after it was made known that a great percentage of its profits are being housed by an Irish subsidiary.
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