How Some Big Companies Are Maximizing Their Tax Benefit

How Some Big Companies Are Maximizing Their Tax Benefit

There’s no question that the IRS is always looking for ways to get every penny they can from the nation’s taxpayers, whether they be individuals or businesses. On the other hand, many are also doing whatever they can to pay as little as possible, some, even less than they owe. As for the business side of the equation, many U.S companies are pulling out all the stops to save money by paying Uncle Sam as little as possible.

What’s there plan

In fact, some of the most profitable companies in the U.S. in the Standard & Poor’s 500, have figured out how to completely wipe out their tax bills for the first quarter of this calendar year. So who are these companies and how did they pull it off? There were 13 companies on the list, some of which included Electronic Arts, General Motors, Seagate Technology and Mondelez International.

Although tax rates in the U.S. are often higher than in other countries there are still ways for companies to keep their tax bill much lower than one would expect. So what did these companies do to achieve this prestigious position?

Who are some of These Companies?

Electronic Arts, for example, was able to report a tax benefit of $30 million because it released deferred tax assets. That decision made it possible for the company to bring in $700 million in cash held overseas without triggering a tax hit.

General Motors, on the other hand, received a $224 million tax benefit due to deductions for stock investments, which the company made in some of its affiliates that are not U.S. based.

By understanding the tax laws and tax breaks available to them, these companies have been able to maximize their tax benefit. If your company is looking for ways to save on its tax bill, then give GROCO a call. We can help you save on your tax bill with the proper planning and accounting. We can also help you with international tax as well as with business valuations. Click here to contact us.

We hope you found this article about “How Some Big Companies Are Maximizing Their Tax Benefit” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

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