How Are Some Big U.S. Companies Shrinking Their Tax Bill?
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.
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Armin Tahmasbi | Encapsulate
I’m a young entrepreneur and a Ph.D. candidate in Biomedical Engineering program at the University of Connecticut, working on “Drug Delivery Systems, Self-Assembled Nanoparticles & Microfluidic Devices”, in Storrs, CT, US. I’m working in Self-Assembled Functional Nanomaterials Laboratory, under the supervision of Prof. Mu-Ping Nieh on “Drug Delivery Systems for cancer therapy”. We’re developing a universal platform for encapsulating and smart delivery of a wide range of drug molecules and
Spencer Jones | Lineus Medical
Spencer worked for 3 years in direct patient care as a Certified Nursing Assistant, Licensed Practical Nurse, and as a Registered Nurse. Frustrated with the inefficiencies plaguing the healthcare system, he was determined to play a role in improving the delivery of healthcare. In 2014, Spencer won the annual ARK Challenge, an Arkansas based business accelerator. The product he developed was a dual lumen peripheral IV called the BVAD, which focuses on painless and uncontaminated blood draws.
Adeel Malik | CEO of Clearstep
While studying finance and neurobiology in undergrad, Adeel spent his time doing neuro-immunology research at the Johns Hopkins Hospital, contributing to several academic publications. After undergrad, Adeel was a strategy & analytics consultant with Accenture for several years where he worked with some of the largest institutions in healthcare across pharma, health tech, health systems, and retail clinics. Adeel’s skills in healthcare analytics, operations, sales, and his breadth of experience