Author Topic: Carl Levin: Caterpillar used Swiss unit to skirt U.S. taxes  (Read 212 times)

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Offline mystery-ak

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Carl Levin: Caterpillar used Swiss unit to skirt U.S. taxes
« on: March 31, 2014, 06:34:23 PM »

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Offline Oceander

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Re: Carl Levin: Caterpillar used Swiss unit to skirt U.S. taxes
« Reply #1 on: March 31, 2014, 07:53:39 PM »
« Last Edit: March 31, 2014, 07:54:26 PM by Oceander »

Offline Oceander

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Re: Carl Levin: Caterpillar used Swiss unit to skirt U.S. taxes
« Reply #2 on: March 31, 2014, 08:02:43 PM »
the little fascist's report is here:  http://www.hsgac.senate.gov/download/?id=78D9F40A-1773-4331-B929-0856FAF332AE


EDIT:

The report is b.s. and Levin is either a stupid idiot who doesn't know what he's talking about or, more likely, is a liar who knows very well that his report is trash and is just trying to demonize caterpillar.

In particular, he is absolutely wrong about the economic substance test.  The question under that doctrine is whether the transactions entered into had any economic substance apart from tax benefits, which in a restructuring like this means that there has to have been some change in economics, other than the reduction in tax, for the transaction to be respected.  And there were economically significant changes:  first, and perhaps foremost, unless there was an agreement in which Caterpillar agreed to make third-party vendors whole if the Swiss sub failed to perform, then the third-party vendors had a significantly different situation, and Caterpillar had a significantly different position, because any liabilities to the third-party vendors for breach of contract would be stuck down at the subsidiary level and Caterpillar itself couldn't be directly sued for those liabilities.  That represents a significant difference in economics that gives substance to this transaction.

Carl Levin is, once again, being an ideological a$$hole trying to demonize Caterpillar for the sake of getting the fascist party, I mean democrat party, base riled up.
« Last Edit: March 31, 2014, 08:14:28 PM by Oceander »

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Re: Carl Levin: Caterpillar used Swiss unit to skirt U.S. taxes
« Reply #3 on: March 31, 2014, 09:03:46 PM »
Corporations have been legally avoiding or deferring foreign taxes for decades. These clowns have been in Congress for their entire careers, and don't have a clue what a successful corporation would or wouldn't do, in running their business, with offshore partners etc.

Part of the reason for the Caribbean Islands is to sunbathe and sail the beautiful waters and beaches. The other reason is for tax havens, and banking options.

Same for the lesser discussed (English) Channel Islands off France's coast.
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