5 Gigantic Companies That Didn’t Pay Their Taxes

Although major companies and corporations are successful, not all of them pay their taxes. Individuals and rich people are not the only ones that avoid paying taxes. Corporations are keeping a good amount of their funds out of the U.S.CitigroupPic

Bank of America

Bank of America has more than 300 off-shore subsidiaries. In 2012, the company reported $17.2 billion in off-shore profits. By having these subsidiaries in off-shore locations, the income is not taxable in the United States.

FedEx

FedEx received a giant tax subsidy of $2.1 billion for purchasing new airplanes to deliver goods. The tax code, as it is written, allowed the company to take this major deduction, which actually wiped out their tax debt.

General Electric

Known for providing electricity and making items such as light bulbs and home appliances, GE is a widely recognized company. Over the last decade, the company has received $29 billion in tax subsidies. For a period of 6 years, taxpayer-funded contracts gave the company $21.8 billion in additional income.

Citigroup

Citigroup is another company with foreign profits. It has been reported that $42.6 billion in foreign profits avoided having taxes paid on it in 2012. They avoid paying the tax on this money by keeping it in a tax-haven location.

ExxonMobil

No U.S. taxes were paid on $43 billion in off-shore profits for ExxonMobil. Again, keeping funds in tax-haven areas, the company has avoided paying $6.2 billion in taxes.

Major corporations have learned their way around IRS tax loopholes. By keeping funds in off-shore accounts, they can avoid paying taxes since the funds are not technically held within the U.S.

Image credit: Neil Pulling

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Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

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