Report: Huge Mass. companies keep billions of dollars offshore
General Electric, Boston Scientific and other major Massachusetts-based companies are accused of keeping billions of dollars in offshore accounts to avoid taxation in 2016, according to a new report.
In fact, the practice extends to 366 of the companies on the Fortune 500 list, according to the Massachusetts Public Interest Research Group. More than half of those companies use subsidiaries in Bermuda or the Cayman Islands to stash the money, the group said.
“General Electric, for example, headquartered in Boston, holds $82 billion in 22 offshore tax havens, including the Bahamas, Bermuda and Luxembourg,” MASSPIRG wrote.
MASSPIRG’s statements are based on a report published by the U.S. PIRG Education Fund and the Institute on Taxation and Economic Policy.
MASSPIRG said the companies across the country keep $2.6 trillion offshore, which results in $750 billion in federal tax avoidance.
“Of the $2.6 trillion in offshore profit, four companies – Apple, Pfizer, Microsoft and General Electric – account for a quarter of the total amount,” U.S. PIRG wrote.
“Closing tax haven loopholes would both eliminate some of the most ridiculous tax gaming and it could help pay for the cost of tax cuts,” said Deirdre Cummings, Legislative Director for MASSPIRG.
Nine companies with their headquarters in Massachusetts hold $120 billion in profits offshore, MASSPIRG said. They are:
- General Electric: $82 billion
- Thermo Fisher Scientific: $12.49 billion
- Boston Scientific: $9.8 billion
- Biogen: $7.6 billion
- State Street Corp.: $5.5 billion
- TJX: $785 million
- Raytheon: $732 million
- American Tower: $649 million
- Staples: $586 million
MASSPIRG also suggested that legislation being considered in the state house could close the loopholes on the state level and save Massachusetts $79 million per year.
