A Government report by the Bureau of Economic Analysis, a unit
of “The Congressional Research Service”, has revealed that the US-based global
companies are increasingly shifting profits into tax havens like Bermuda and
Switzerland. This is a finding based on profit data from multinational companies
and compared reported profits and other business activity in lower-tax
jurisdictions versus higher-tax countries like the United Kingdom and
Canada.
Among the findings: American multinational companies reported 43
percent of their overseas profits in the tax havens studied - Bermuda, Ireland,
Luxembourg, the Netherlands, and Switzerland in 2008, the most recent year data
was available. Simultaneously, these companies hired only 4 percent of their
foreign workforce and made just 7 percent of their foreign investments in these
same countries.
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