Beijing time news on the 3rd,A new study points out that the "tax gap" of the six Silicon Valley technology giants in the past decade has totaled more than $100 billion.Fair tax mark is a UK organization that provides certification of good tax conduct for businesses. It assessed the global tax situation of Facebook, apple, Amazon, Netflix, Google and Microsoft between 2010 and 2019, and referred to the six companies as "Silicon Valley six giants".
The study, released on Monday, analyzed the companies' 10-K filings, looked at their tax reserves - the amount of tax that companies set aside in their financial statements - and compared them with the actual tax paid, or cash tax. The researchers found that the gap between the six Silicon Valley giants' tax reserves and their actual tax payments has reached $100.2 billion in the past decade.
The report notes that tax reviews of large companies tend to focus only on tax provisions, which are not always the amount of tax actually received by the government. The report also claims that profits continue to be "transferred to tax havens, particularly Bermuda, Ireland, Luxembourg and the Netherlands.".
Most of the tax gaps "come almost entirely from outside the United States," the researchers said, because foreign tax spending accounts for only 8.4% of the companies' overseas profits over the past decade.
Paul Monaghan, chief executive of Fair Tax Mark, said the company's accounts had a huge difference between their accounts and their actual tax payments, the "The actual tax paid by these companies is less than $10 billion that is reported in their accounts.".
Amazon, the e-commerce giant that has paid $3.4 billion in income tax since 2010, is the most serious violator of the six, the report said. Fair tax mark points out that over the past decade, the company has only paid a cash tax equivalent to 12.7% of its profits. But in seven of the years covered by the survey, corporate tax in the United States was 35%. It wasn't until the end of 2017 that President trump cut corporate tax rates from 35% to 21%.
"The company is expanding its market dominance globally, and the revenue behind it is largely tax-free, which could unfairly affect local businesses taking a more responsible approach," the report said
In 2018, Amazon's revenue reached $232.9 billion, with a market value of about $892 billion. In an email statement, a spokesperson for Amazon said the statement in the fair tax Mar report was wrong.
"Amazon accounts for about 1% of the global retail industry, we have bigger competitors in all markets we operate, and the effective tax rate on our profits in 2010-2018 is 24%," the company said
According to the report of fair tax mark, Facebook's "tax gap" in the past 10 years is second only to Amazon. The researchers said the company paid a cash tax of only 10.2% of its profits over the past decade, the lowest of the "six giants in Silicon Valley.". Fair tax Mar points out that Facebook also has the lowest tax rate among the six companies overseas, accounting for only 5% of its overseas profits.
Google's "tax gap" ranks third, reporting that its total tax revenue over the past 10 years is equivalent to 15.8% of profits, while its overseas tax rate is only 7.1%.