Report Accuses Wal-Mart of Dodging Taxes on Billions

Photo (cc) by JeepersMedia

Wal-Mart is using a network of offshore tax havens to shelter $76 billion in undisclosed assets, said a report by Americans for Tax Fairness, a union-supported tax-reform advocacy group.

The report says Wal-Mart failed to disclose its complicated network of 78 subsidiaries located in 15 tax havens in its U.S. securities filings.

“[Wal-Mart] is using tax-haven subsidiaries to minimize foreign taxes where it has retail operations and to avoid U.S. tax on those foreign earnings,” said Americans for Tax Fairness.

The report notes that 90 percent of Wal-Mart’s overseas assets are owned by subsidiaries in Luxembourg and the Netherlands, where the company has no stores.

Wal-Mart’s Luxembourg subsidiaries had $1.3 billion in profits between 2010 and 2013, but paid just $2.4 million in taxes, the report said.

According to Bloomberg, Wal-Mart spokesman Randy Hargrove said the report contains incomplete information “designed to mislead.”

Hargrove said Wal-Mart has “processes in place to comply with applicable SEC and IRS rules, as well as the tax laws of each country where we operate.”

The United Food & Commercial Workers International Union helped research the report, The Wall Street Journal said. The union group supports the Organization United for Respect at Wal-Mart, a group that advocates on behalf of Wal-Mart workers for wage increases, better schedules and other improvements.

Hargrove said Wal-Mart – which reported $16.2 billion in U.S. profits last fiscal year – paid $6.2 billion in U.S. federal corporate income tax last year. In its securities filing, Wal-Mart said it had $23.3 billion in profit from its international subsidiaries, which it said it permanently reinvested overseas.

Wal-Mart is just the latest company to come under scrutiny for avoiding income taxes by attributing profits to subsidiaries in low-tax jurisdictions, Bloomberg said. Google, Inc., Apple Inc. and Starbucks Corp. have also been accused of using off-shore tax havens to shelter profits.

What do you think of the report on Wal-Mart? Share your comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t

Thinking of trying to deduct a few of these things on your federal tax return? That could be a costly mistake.

15 Ways Retirees Can Make Their Savings Last Longer

Study these strategies to make your golden years gleam.

9 Things You Should Never Pay For With a Debit Card

Use your debit card for one of these expenses, and you could risk your bank account balance, your credit score or even identity fraud.

10 Food Staples That Are Easy and Cheap to Make Yourself

Making any of these key foods yourself will improve meals — and your budget.

21 Purchases You Should Never Skimp On

With some items, it makes sense to pay a little more rather than hopping on the lowest price.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
8 Tips for Retiring Comfortably on Social Security Alone

It’s never too early to start learning how to live well while living on less.

Am I Eligible for My Mother’s Social Security Benefit?

Can an adult daughter tap into her late mother’s benefit?

Can a Divorced Widow Claim Her First Husband’s Social Security Benefits?

The rules are complicated when it comes to eligibility for survivors benefits.

27 Things You Should Never Pay For — and How to Get Them for Free

When you know the tricks, you can save big on all kinds of useful things that others pay for.

11 Generic Products You Should Buy at Costco

Not all generics are worthwhile, but these are among the best from Costco’s Kirkland Signature brand.

9 Mistakes Everyone Makes When Shopping on Amazon

Are you losing money due to any of these missteps?

15 Free Streaming Services to Watch While Stuck at Home

These free movie streaming sites offer thousands of movies and TV shows, including recent releases and beloved classics. If you love free movies, online sites are where you need to look for the best list of features that are just one easy click away.

3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

This Surprise Factor Can Raise Your Risk of Dementia

Nearly half of U.S. residents may face this threat.

9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

6 Legal Documents Retirees Need — but Don’t Have

Few retirees have all of these documents that are crucial to their golden years — especially during a pandemic.

10 Things I Always Buy at Trader Joe’s

From snacks to sweets to side dishes, stock your cart with these time-tested favorites on your next TJ’s run.

4 Tax Credits That Will Be More Generous in 2021

If you are eligible for these tax breaks, they will slash your federal income tax bill — dollar for dollar.

These Are the 3 Best Used Cars You Can Buy

These vehicles boast reliability, safety and long-lasting value.

15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

19 High-Paying Jobs You Can Get With a 2-Year Degree

There are easy high-paying majors available in the U.S. — and no bachelor’s degree is required. We’re here to help you find easy degrees that pay well.

The Worst Day of the Year to Buy a Used Car

If you need a new set of wheels, avoid shopping on this day.

9 Small Expenses That Are Bleeding Your Budget Dry

Keep more of future paychecks by eliminating these budget-busting unnecessary expenses.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.