Foreign Direct Investment - Or Tax Scam

A new study by the International Monetary Fund shows that $15 trillion is held in shell companies across the world for tax avoidance purposes, depriving local economies of tax revenue. $15 trillion is 40% of the world’s foreign direct investment (FDI), a term for money transferred across borders between firms belonging to the same parent company. In theory, FDI should enhance and invest in local economies. However, many of these tax-avoidance subsidiaries serve no business purpose, other than to channel earnings into low tax venues (Bermuda, Ireland and Netherlands, for example). Some of the tax avoidance arrangements have even acquired cutesy nicknames: Consider the "Double Irish with a Dutch Sandwich" (below). The arrangement is "legal" - but should it be treated as if it has economic substance?

5 views0 comments

Recent Posts

See All

I don't know if this counts as a "Well Duh" or not? Forbes Magazine has been champing at the bit over the Office in the Home (OIH) deduction. It seems Forbes just realized that employees who work from

A group of advocates for the entertainment industry is pushing congressional leaders to consider tax relief for a range of people working in film, television, music and theater. Screen Actors Guild -

The IRS has opened its "Non-Filer" portal - so you can get your $1,200 Economic Impact Payment electronically. This will expedite the transfer directly to your account. Use this link to sign up: https