Large Multinational Companies Evading Taxes

Posted on July 1, 2023

Large Multinational Companies Evading Taxes

Large multinational companies find ways to evade taxes in the U.S. by using the loopholes in the tax code so that they can avoid paying taxes without breaking the law. The government cannot force individuals and corporate companies to stop evading taxes until there is a change in the law. To stop legal tax evasion, the tax code needs to be updated.

There have been discussions in Congress about a complete overhaul of the tax code to make it simpler. When, or if, this happens, the loopholes in the tax code that are currently being used to evade taxes legally will be closed. Even though there is no guarantee that an overhaul of the tax code will completely stop tax evasion, it will limit tax evasion to a large extent.

Many large corporate companies evade taxes legally by keeping their profits earned overseas. Companies claim the high corporate tax rate as the reason they legally evade taxes in the U.S.

There has been much debate on the issue, but until now no resolution has been found. Corporate companies demand a lower tax rate while the government demands that companies to pay taxes in the U.S. As things stand now, the IRS is focusing on stopping tax evasion by increasing transparency in the transactions U.S. taxpayers make overseas.

 

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