Tax Haven Incorporation for US Headquartered Firms

Legal tax avoidance – including the use of tax havens – has reduced corporate tax bills to a pittance in countries where companies make big profits. But professors Eric J. Allen and Susan C. Morse put the lie to the common belief that more and more US-based multinationals are incorporating in tax havens. Their research spans years of data and indicates that only about 3% of firms exploit that loophole. Given the dramatic scope for US tax planning, why would companies pay taxes they can legally avoid? getAbstract recommends this well-researched paper – with its handy synopsis of relevant US tax law – to business executives and tax professionals.