How Are Some Big U.S. Companies Shrinking Their Tax Bill?

A,Person's,Hand,Measuring,Pink,Piggybank,With,Measure,Tape,On

Every company wants to save on its tax bill. Although tax inversions have been making a lot of news lately, there are many other methods that corporations use to cut back on their taxes. In fact, seven companies in the S&P 500 index, including some big names that everyone is familiar with, have been able to effectively lower their tax bill every year over the last five years. So who are these companies and what’s their secret?

Google, PetSmart, Kohl’s and TripAdvisor are some of the companies that have been able to lower their effective tax rate while still seeing an increase in their net income from 2008 to 2013. One of the most popular tactics these companies use is to place a lot of cash into overseas accounts where business tax rates are much lower than in the U.S. For example, Google says it is keeping $38.9 billion of its $57.5 billion cash in overseas accounts.

Meantime, TripAdvisor used a restructuring of its operations outside of the U.S. to better manage its treasury and deployment of its global cash, in order to cut its taxes. The company managed to push its effective tax ate down to 27.8 percent in 2013 from 39.3 percent in 2008.

The fact is there are many ways to help reduce a company’s tax bill. If you are looking for ways to cut back on how much your company is giving to Uncle Sam, then contact GROCO today. We can help your company plan and prepare for all of your tax needs. Click here to learn more about our services.

Posted in ,
My Entrepreneurial Journey with AI, an Interview with V Ray, co-founder of Valex Solutions

My Entrepreneurial Journey with AI, an Interview with V Ray, co-founder of Valex Solutions

Introduction (V Ray, an entrepreneurial journey with AI) In this interview, Alan Olsen, CPA, MBA discusses an AI entrepreneurial journey with with V Ray, Ms. Ray is the co-founder of Valex Solutions Transcript (software generated): V Ray AI has the ability to take in data and make decisions that would just seem so overwhelming for human…

Empowering Leaders of Family Businesses with Lee Brower

Empowering Leaders of Family Businesses

Introduction, in this interview, Alan Olsen, CPA, MBA discusses empowering leaders of family businesses with Lee Brower, Founder, Empowered Wealth LLC. Transcript (software generated): Alan Olsen Welcome to American Dreams. My guest today is Lee Brower. Lee, welcome to today’s show.   Lee Brower Alan, I’m delighted to be here. Thank you for having me.…

Redefining Social Responsibility In The Financial Industry: Our Conversation With David Reiling

David Reiling on Redefining Social Responsibility In The Financial Industry

Recently, on Alan Olsen’s American Dreams show, David and Alan talked about redefining social responsibility in the financial industry. See David’s Recent Interview with Alan Olsen: https://www.youtube.com/watch?v=ztdtPfH9RAk&t=2s David’s background David Reiling is an accomplished social entrepreneur and innovator in the field of community development finance and financial inclusion. He has been the Chief Executive Officer…

Banking As A Social Entrepreneur with David Reiling

Banking Reimagined As A Social Entrepreneur

Introduction, in this interview, Alan Olsen, CPA, MBA discusses banking as a social entrepreneur with David Reiling, CEO, Sunrise Banks. Transcript (software generated) Alan Olsen Welcome to American Dreams. My guest this week is David Reiling. David, welcome to today’s show.   David Reiling Thanks, Alan. Great to be here.   Alan Olsen So David,…