How the U.S. government has let big energy giants avoid paying taxes and keep billions in profits by shifting profits to tax havens in offshore tax havens, according to a report from a group of congressional Democrats and an analysis by a bipartisan think tank.
“The result of this is that corporations and individuals that are not paying taxes have gotten massive tax breaks,” said Democratic Rep. Elijah Cummings of Maryland, the ranking member on the House Oversight and Government Reform Committee.
The report released Thursday by the progressive Tax Justice Network, which has also called for investigations of the Trump administration’s efforts to avoid taxes, says companies and individuals in some of the world’s most secretive tax havens “have used their offshore tax haven profits to avoid hundreds of billions of dollars in taxes owed in the United States.”
The report cites a 2015 report by the nonpartisan Joint Committee on Taxation that said companies that hold profits offshore are “highly likely to have avoided tens of billions in taxes, even if they did not pay taxes in the U,S.”
“It is outrageous that the Trump Administration is not addressing the tax havens and other loopholes that enable corporations and wealthy individuals to avoid paying U.N. and other taxes, especially in the face of overwhelming evidence that their actions are in the public interest,” Cummings said in a statement.
Cummings, who has pushed for investigations into the Trump campaign’s links to Russia, said the report is a call to action to Congress and the White House to “make it clear that this tax avoidance is unacceptable and that the United Kingdom, the United states, and all nations must demand the U-Turn on the offshore tax avoidance.”
The tax dodge that the report found is common for many of the companies listed in the report.
For example, the Tax Justice report says that between 2013 and 2015, in an attempt to hide profits from taxes in Ireland, the British Virgin Islands and Jersey, U.K.-based companies paid $13.4 billion to offshore tax regimes.
In 2016, that figure was $8.6 billion, the report says.
Other companies that have been found to have used tax havens to avoid U.L.G. tax include Royal Dutch Shell, which paid $5.6 million to the Bahamas in 2013 and 2016.
And Apple, which last year paid a total of $1.5 billion to the Cayman Islands, Ireland and Jersey.
The Tax Justice Group says the tax dodge has cost taxpayers billions of more than $1 billion since 2010.
The multinationals that are among the top 10 tax cheats in the world, the group said, are mostly in the energy sector, and they are the ones that have “most at stake in our future prosperity.”
Companies that are found to be in the top tax havens include American Airlines, Chevron, ConocoPhillips, General Electric, ChevronTexaco, ExxonMobil, General Motors, Exxon Mobil Corporation, Intrepid Exploration, LyondellBasell, and Procter & Gamble.
“It’s not just an energy sector issue.
It’s a global issue, and we need to address it,” Cummings told The Washington Post.
“And if we don’t get the attention, we are going to continue to do the same thing.”
The Tax Journal reported that the companies and corporations identified by the Tax Policy Center as having the biggest tax dodge in the tax world are: American Airlines.
Its total U.s. income tax liability is $21.2 billion, according the Tax Journal.
American Airlines paid an average of $12.5 million in U.C.I.A. taxes in 2016.
It also paid a penalty of $2.5-million to the U for withholding income tax from payments made to the Internal Revenue Service.
The company also paid an effective tax rate of about 10.7 percent.
Chevron has paid a tax bill of more a whopping $23.5 billions, according Tax Journal estimates.
Chevron paid $9.7 billion in taxes in 2010, a year when the company paid a dividend of $3.5 per share, according tax documents.
Chevron was also found to pay taxes to the IRS on a $2-billion payment in 2013.
American National Petroleum, Chevron’s parent company, paid $7.4-billion in U,C.U. taxes.
The oil company’s profits were used to pay a $8-billion dividend to shareholders, according documents.
The energy company paid $1,100,000 in taxes to Uncle Sam in 2016, according records.
Exxon paid $3,400,000 to the Treasury Department in 2010 to file a Form 990.
Exxon also paid $2,000,000 tax to the Tax Service in 2010 and $1 million in 2012.
Chevron Texaco paid $18.3 billion in U.,C.S