Zoom, Nike and Salesforce made billions of dollars in profits, but did not pay any fees to the Treasury Department.
New report A report by the Institute of Taxation and Economic Policy (ITEP), a think tank, pointed out that in the last fiscal year, 55 of the 500 largest companies in the United States did not pay taxes at the national level.
Nike is one of the companies that has not paid corporate taxes by 2020 despite making nearly $3 billion in profits. Since the tax rebate amount exceeds 100 million U.S. dollars, the final effective tax rate of this commodity company is negative 18%.
According to the report, the state-level taxes of giants such as FedEx and Salesforce have also fallen by 0 crowns.
-According to its own financial report, the total revenue of the tax-exempt company by 2020 will reach 40 billion U.S. dollars. ITEPi reports that if 55 companies that avoided corporate taxes paid a 21% tax rate, they would total $8.5 billion.
According to the institute, in addition to companies that received $3.5 billion in tax rebates, these companies also received $12 billion in tax deductions last year.
-Many companies do not pay taxes, which shows that there are many legal regulations and exceptions. Alan D. Viard of the American Enterprise Institute, a think tank, says that the law does not say what is good or bad. New York Times.
One of the companies that uses specific legal terms is Zoom.
Zoom stated that in the Corona Year of 2020, Zoom’s profit will be approximately NOK 5.6 billion, but it has not paid any corporate taxes. Another report From ITEP.
A frequently used Zoom loophole is the cancellation of the company’s share options allocated to management.
The vulnerability was caused by the company distributing share options to management and posting these options to the account. On the other hand, the cost of allocating share options is not applicable for tax purposes before management actually redeems the options. When an option is exercised, the value of the stock usually rises more than the cost previously entered by the company, so the cost that the company can offset from the tax may be much higher than the company’s own book cost.
It is said that by using this loophole, Zoom will reduce its tax bill by approximately $300 million by 2020.
For accounting and tax purposes, Amazon and Netflix will also benefit from cost accounting differences.
Since former President Donald Trump lowered the tax rate from 35% to 21% in 2017, the corporate tax payment of several US companies has dropped significantly.