Agence France Press: Behind Big US Deals in Europe: Avoiding Taxes
media mentionBy Agence France Press, April 30, 2014
General Electric wants to buy France’s Alstom; Pfizer is chasing Britain’s AstraZeneca — US companies are looking hungrily at European rivals.
But the reason is not just to grow. The American giants, at least in part, are looking to avoid potentially large tax bills back home.
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The worry is that companies will increasingly seek to reduce their US tax bill — and deny the US government needed funds — by using accounting measures to push even more income abroad, said Matt Gardner, executive director of the Institute on Taxation and Economic Policy.
“Our concern is that the next step is that they will even shift their US profits on paper offshore,” he said.
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