Saturday, January 17, 2009
Bailed-Out Banks Using Offshore Tax Havens
U.S. Subsidiaries in Offshore Tax Havens
This should not come as a surprise to anyone, as big corporations have always operated with the intent of maximizing profits and offshore tax havens are not new.
The question is what do you think our government should do about the corporations receiving bailout funds while also using tax havens?
Many of the largest United States corporations, including big banks now receiving federal bailout money, operate scores of subsidiaries in offshore tax havens that may let them evade or defer their tax bills, according to a government study released Friday.
The study, by the Government Accountability Office, singled out Citigroup as having 427 subsidiaries in offshore havens like the Cayman Islands, British Virgin Islands and Switzerland. Bank of America has 115 subsidiaries in offshore havens, while Morgan Stanley has 273, the report said.
Bank of America received an additional $20 billion in government aid on Friday, on top of a previous $25 billion, and a federal promise to absorb nearly $98 billion in soured mortgage-related securities. Citigroup is expected to get $50 billion.
This should not come as a surprise to anyone, as big corporations have always operated with the intent of maximizing profits and offshore tax havens are not new.
The question is what do you think our government should do about the corporations receiving bailout funds while also using tax havens?
# posted by dan @ 9:37 AM 
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This is an interesting topic, and I actually did my final group project for Dr. Walton’s case problems class on the bail out issue! This is all a very sticky situation! For the first $billions the government handed out in bail out money there was no system for tracking the money. No one knows exactly where all the money went!! So, the lesson to be learned was that there needs to some type of micro-managing! If we are going to hand money out to failing companies (which is necessary to avoid devastation of our economy) a department should be assigned to hold corporations and groups accountable for where the money is going!!
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# posted by 
: 2:33 PM
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