December 16, 2019
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December 16, 2019
October 29, 2019
On Tuesday night, 25 Republicans joined nearly all the chamber’s Democrats to approve the Corporate Transparency Act, a bill that would require those creating a company to report its owners to the federal government. The White House expressed support but called for the House and Senate to work on certain details.Read More...
August 23, 2019
In 2017, a Colorado court convicted four individuals, including a former police officer, of racketeering, money laundering, and conspiracy for illegally selling counterfeit Denver Broncos merchandise as well as additional sports products from other professional and college teams around the country. A key element of the international counterfeiting scheme was the use of more than 20 anonymous companies.
This is just one of a number of schemes that were highlighted in a FACT Coalition report, titled “Anonymous Companies Help Finance Illicit Commerce and Harm American Businesses and Citizens,” which was published earlier this year. Authored by David M. Luna, a former U.S. national security official and current chair of the Anti-Illicit Trade Committee of the United States Council for International Business, the report reveals the harms imposed upon legitimate businesses, unwitting consumers, and even the United States military by anonymous companies engaging in the trade in counterfeit and pirated goods. Currently, these criminal entities operate with impunity in the United States and are able to circumvent the law with little risk of accountability. The report concludes that enacting legislation requiring the disclosure of beneficial ownership information is an essential measure to combat the increasingly prolific abuses perpetrated by these shadowy networks.Read More...
August 9, 2019
In recent days, presidential candidates Sen. Kamala Harris and New York Mayor Bill DeBlasio have called for taxing corporate profits the same whether they are earned in the United States or abroad. These calls echo the position of Sen. Bernie Sanders, who has long had a proposal along these lines. As ITEP has explained, correcting this inequity is not a mere detail but rather a sweeping reform that could end incentives for companies to shift profits and jobs offshore.Read More...
July 26, 2019
The images of Chinese President Xi Jinping and Kim Jong-un waving from atop a Mercedes Benz limo have made the rounds on the internet over the past few days in the wake of a new study published by the Center for Advanced Defense Studies (C4ADS) and covered by the New York Times and CNN, among others. C4ADS research details how North Korea has evaded sanctions to secure luxury goods — and other more nefarious items — through its illicit finance operations.Read More...
May 1, 2019
A group of CEOs from major companies, a trade association of major multinational enterprises, and a small business trade group each called on Congress over the past week to end the abuse of anonymous shell companies, adding to the momentum to enact corporate ownership transparency legislation.
A dozen current and former CEOs from major corporations (including Allianz, Chobani, Danone, Kering, and Unilever) sent a letter to Congress on Tuesday calling on lawmakers to end anonymous shell companies by enacting the bipartisan Corporate Transparency Act of 2019.Read More...
April 15, 2019
On Tax Day 2019, the first year of data on corporate taxes under the Tax Cuts and Jobs Act (TCJA) are coming in. Those who championed the corporate reforms promised, among other benefits, that the changes would end the offshore shell games by multinationals, profits stashed in tax havens would return to the U.S., and the new competitive rate would attract a flood of foreign direct investment.
Opponents of the new law, like the FACT Coalition and our members, argued that the incentives would have the opposite effect: the offshoring of profits would continue and the incentives might well create new (unhelpful) distortions influencing corporate behavior.
It is now time to look at what actually happened. To get a better sense of the impact, consider the following recent excerpts from various news reports and analysis by tax experts.Read More...
March 18, 2019
Last Thursday, Representative Lloyd Doggett and Senator Sheldon Whitehouse announced that they are reintroducing the “No Tax Breaks for Outsourcing Act.” Our international corporate tax rules have been a mess for a long time, and the Tax Cuts and Jobs Act (TCJA) failed to resolve the problems. The old rules and the new rules under TCJA both tax offshore corporate profits more lightly than domestic corporate profits, but in different ways. The No Tax Breaks for Outsourcing Act would create rules that tax domestic profits and foreign profits in the same way.
The old rules allowed American corporations to defer paying taxes on their offshore profits until those profits were officially brought to the U.S., which in many cases was never going to happen. The new rules, under TCJA, are also problematic because they exempt certain offshore profits and tax other offshore profits at just half the rate imposed on domestic profits.Read More...
March 12, 2019
This Wednesday, March 13th, the House Financial Services Committee’s subcommittee that covers national security issues will hold a hearing on corporate transparency and efforts to fight money laundering. They will once again discuss a proposal to collect the ownership information (a.k.a. beneficial ownership) of companies when they are formed in the United States. Currently, no state collects this information, and the anonymity has opened the door to a vast array of bad actors that endanger our communities and threaten our national security. More on that later.
The Committee is to be applauded for raising these important issues. Let’s only hope that, this time, they listen to what they hear.Read More...
February 15, 2019
Amazon, the ubiquitous purveyor of two-day delivery of just about everything, nearly doubled its profits to $11.2 billion in 2018 from $5.6 billion the previous year and, once again, didn’t pay a single cent of federal income taxes.Read More...