Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 1 Share on Twitter Printer Friendly Page More Sharing
Exclusive to OpEdNews:
OpEdNews Op Eds   

TRANSFER PRICING:A CORPORATE SHELL GAME

By by Joseph P. Horgan, Project Director, Tax Justice Network ┬ľ USA  Posted by (about the submitter)       (Page 1 of 2 pages) (View How Many People Read This)   No comments
Author 14011
Message

 

A carny will at least tell you up front that he's running a shell game. —the Senator Peter Fitzgerald (R-IL) to Ken Lay, disgraced CEO of Enron.1


The shell game is as old as money and is played the world over. Corporations loyal to no nation are now operators in a version of the shell game. And, like any shell game, a bettor can only win if the operators want you to win.


Here's how corporations play:


First, corporations establish an overseas buyer for its product.


Next, they establish a shell company in a tax haven jurisdiction. At the height of its grand deception, Enron had over 440 shell companies on the tiny Cayman Islands.


Rather than sell the product direct to the buyer at a price that will cover the costs of production plus profit, the corporation sells it at a loss to their shell company, deducting the "loss" from their taxes.


Then, the shell company sells it at the price it maintains for the product when it's not selling to a shell company to the overseas buyer.


The company, through its shell company, makes a profit from the sale and by deducting the money it “lost” selling to its shell company.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

 

Rate It | View Ratings

Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact EditorContact Editor
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

To View Comments or Join the Conversation: