Is it interesting that when a “big bad corporation” does
something to save on taxes being paid, we as the general public end up in rage.
I truly find it humorous.
We, at Liberty Tax, spend countless hours each year trying to find ways
to save the taxpayer on their taxes, yet when a corporation, who certainly has
more loopholes, makes a few strategic moves to save on their taxes, the general
public, media, bloggers and the like go crazy.
Recently Microsoft Corp and Hewlett-Packard were accused of
shielding money in offshore accounts to avoid paying taxes.
Take for instance this leading paragraph from NBC
News: “Microsoft Corp and Hewlett-Packard Co used offshore units to shield
billions of dollars from U.S. taxes by taking advantage of loopholes and
stretching the limit of the tax code, a U.S. Senate panel said on Thursday.”
Interesting, the panel admits that there are loopholes and
that the tax code was stretched. How is
this any different that you or I making an IRA contribution on April 15 prior
to paying our taxes each year? We are
within the guidelines of doing this and we are saving how much money we are
going to pay on our taxes by making an IRA contribution.
The big difference: You and I versus the corporation. You and I will avoid dollars of taxes being
paid while the corporations will avoid paying millions or billions.
Now the Microsoft/HP tax situation gets a little sketchy in
the accusations. Items that I will not
get into and it may prove to be fraudulent, however my issue is how we, as the
public get our panties in a bunch over issues when there are a couple of added
zeros at the end of the dollar amount in the point of reference.
Money, when someone has a lot of it, gets a bad rap. I think it is important for us to remember
that money is amoral. It doesn’t decide
if it is good or bad as it just exists.
The beholder of the money is the one who decides whether or not they are
going to do good things with it.
I do want to clear one point up before you blow up my email
box. I’m not a fan of offshore accounts
and know that the money would be better spent/saved here in the United
States. This is not a discussion about
whether or not offshore accounts are morally correct.
What are you opinions?
Has Microsoft/HP broken the law?
In the meantime, if you are ready to schedule some time to
see how we can help you strategically plan your taxes, come on in and see us!
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.