Tax Evasion Costing US $100 Billion a Year

In the 1/15/15 US Congress Report (Tax Havens: International Tax Avoidance and Evasion, Jane G. Gravelle) the new report projects $100B per year in taxes lost by US companies and US citizens shifting profits and income offshore. Although US companies may do so legally (if the company is not a controlled foreign corporation i.e. has 5 or fewer US shareholders) US citizens who do not report offshore income (and disclose foreign accounts) commit tax evasion (a 5 year felony), see article below.

Report: Tax Evasion, Avoidance Costs United States $100 Billion A Year

By: Adam Kredo,

Companies and U.S. citizens shifting profits and income offshore are bilking the U.S. government out of $100 billion in tax revenue a year, according to a new analysis by a congressional research group.

Those using offshore tax havens to skirt paying taxes cost the U.S. government “around $100 billion per year,” according to the Congressional Research Service (CRS), which examined in a new report the many ways in which people cheat the government.

“This activity appears to have increased substantially in recent years,” the report notes.

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