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 taxpayers are also doing whatever they can to cut their tax bills. As for the business side of the equation, many U.S companies are pulling out all the stops to save on their taxes.
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?
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.