The United States Senate has adopted an amendment championed by Sen. Carl Levin (D-Mich.) that would bar the award of future contracts through several government departments to U.S. companies that have set up headquarters offshore to avoid American taxes.
“We should not reward the tax haven games played by U.S. companies who want to enjoy U.S. benefits without paying their fair share of U.S. taxes,” Levin commented in a statement on Friday.
“It is unfair to the U.S. companies that pay their taxes and have to compete with these tax scofflaws, and it is unfair to all the other honest taxpayers forced to make up the difference," he added.
The Levin amendment has been included in the Senate bill funding the Departments of Transportation, Treasury, Housing and Urban Development, and other independent agencies for the 2006 fiscal year.
Levin continued:
“The companies targeted by this amendment claim to have moved their headquarters to a tax haven when, in reality, their primary offices and production or service facilities remain right here in the U.S."
“There is no reason to reward this tax dodge or companies that have renounced their U.S. corporate citizenship by giving them new federal contracts that are paid for with taxpayer dollars.”
The ban would be similar to the ban that already applies to Department of Homeland Security (DHS) contracts.
A Levin amendment that was signed into law last year strengthened the DHS ban.
A comprehensive report in our Intelligence Report series looking at offshore and onshore corporate structures and their tax implications is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report7.asp
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment