Untaxed US firm profits to hold abroad at USD2.1 trillion

(MENAFN) A private research firm's report confirmed, calling for reform by the Senate's top tax law writer that foreign profits held abroad by US corporations to evade taxes at home nearly doubled during 2008 till 2013 to top USD2.1 trillion, The Peninsula Qatar reported



According to US law, corporations are not obliged to pay income tax on most of their overseas profits until they are brought into the United States. These earnings can be held offshore for years if they are classified as indefinitely invested abroad



Research firm Audit Analytics said that the total of earnings grew 93 percent from 2008 to 2013, citing federal financial filings for companies listed in the Russell 1000 index of US corporations



Conglomerate General Electric Co had the biggest pile of earnings stored abroad, at USD110 billion. Followed by software maker Microsoft Corp, with USD76.4 billion, then drugmakers Pfizer Inc, with USD69 billion, and Merck & Co Inc, with USD57 billion, and high-tech group Apple Inc, with USD54.5 billion