PDA

View Full Version : U.S. Issues Rupert Murdoc's Newscorp made 10 billion dolars in profit. Total taxes paid? Negative


KILLER_CLOWN
07-13-2011, 02:36 PM
Rupert Murdoc's Newscorp made 10 billion dolars in profit. Total taxes paid? Negative 4.5 billion, that's right we paid them.

July 13, 2011
\

British investigators continue to dig for details in the News Corp. hacking scandals.


Reuters news service columnist David Cay Johnston, meanwhile, says an investigation of the company's public financial figures shows it has consistently made money at tax time over the past four years. And, he says, it's all legal.



Johnston says the company's tricky accounting has netted it billions of dollars.

"News Corporation made over $10 billion in profits over the last four years. And their tax came to $4.8 billion, negative," Johnston says. "That is, they made $4.8 billion from tax refunds."



Other companies, including GE, have achieved similar feats before, Johnson says. GE managed not to pay any taxes last year. But most don't make billions in profit, he adds.

It would "... increase their profits, if you looked at it that way, by almost 50 percent," Johnson says of News Corp.



Johnston says News Corp. was able to use the system in its favor by taking advantage of a few corporate tax laws. One provision allows a company to reach back and carry forward tax losses and benefits from many years.



"The second thing that Mr. Rupert Murdoch does that's very important is ... [use] tax haven subsidiaries," he says. "And when you have a tax haven subsidiary the Cayman Islands, Bermuda, Panama what you do is you take expenses in the United States, and then you take the profit in the tax haven where they don't pay a tax on it."



Utilizing off-shore havens, News Corp. was able to show the IRS a theoretical loss, even though it made money, Johnson says.



"You look to investors like a gold-plated company and look to the IRS like you're a moth-eaten failure," Johnston says.



He says it's not unusual for companies to make money on their taxes, but it's not the standard either.



"For all but the 12,000 largest companies in America those are ones that are worth billions of dollars, they're household name companies the corporate tax every year runs about 32 percent of profits and the rate's 35 [percent]. So they're paying their full bill," he says. "For the very biggest companies, the average is less than 20 percent."

But Johnston says there's nothing illegal in News Corp.'s accounting.



"That's the scandal is that it's legal to do many of these things. Hacking into people's cell phones, interfering in murder investigations, paying off Scotland Yard cops, that's a crime," he says. "But the tax material, the scandal is the law that they simply exploit brilliantly by hiring really smart people to do it."

http://12160.info/forum/topics/rupert-murdocs-newscorp-made?xg_source=activity

Bewbies
07-13-2011, 02:39 PM
This sounds like the taxpayers paid his company $4.8B in the fund of a return...?

eazyb81
07-13-2011, 02:53 PM
Sounds like you should be upset at the IRS for being so f'n stupid and allowing such "loopholes".

The reality is that the corporate tax rate should be 0%.

Bewbies
07-13-2011, 02:59 PM
Sounds like you should be upset at the IRS for being so f'n stupid and allowing such "loopholes".

The reality is that the corporate tax rate should be 0%.

The IRS don't write the rules....

If this is true, and they got $4.8B from the gov't in return for $0 in contribution I'd like to submit that the progressive tax system is the fairest system ever developed.

alnorth
07-13-2011, 03:57 PM
Sounds like you should be upset at the IRS for being so f'n stupid and allowing such "loopholes".

The reality is that the corporate tax rate should be 0%.

Why would we be mad at the IRS? They don't write tax law.

jiveturkey
07-13-2011, 04:01 PM
I need a better accountant.

mikey23545
07-13-2011, 04:08 PM
But Johnston says there's nothing illegal in News Corp.'s accounting.



There's what the whole article really boils down to.

jiveturkey
07-13-2011, 04:45 PM
A couple of issues.

How can anyone complain that our corporate tax rates are out of control? Are there countries that are beating -5%?

They should be creating enough jobs on their own to turn this turd of an economy around. Low taxes equal job creating magic.

petegz28
07-13-2011, 04:56 PM
So when does the Big O come out with Immelt at his side and blast Rupy??

|Zach|
07-13-2011, 05:04 PM
So when does the Big O come out with Immelt at his side and blast Rupy??
My decoder ring is broken.

Jaric
07-13-2011, 05:10 PM
I need to get in on this being rich thing.

alnorth
07-13-2011, 05:34 PM
A couple of issues.

How can anyone complain that our corporate tax rates are out of control? Are there countries that are beating -5%?

They should be creating enough jobs on their own to turn this turd of an economy around. Low taxes equal job creating magic.

Our corporate tax rates are obscenely high, whether or not there are huge loopholes that only a few have the ability exploit. (not to be confused with personal income taxes, which are near historic lows)

Our insane corporate tax policy is encouraging companies to do business overseas and never repatriate the profit because our statutory tax rate is far greater than our peers. That screws the smaller and medium-sized businesses who have no choice but to pay the full bill.

Our corporate tax system needs to be simplified with most of the breaks and loopholes wiped out, and the rate lowered to a level that would be competitive in a post-loophole system.

petegz28
07-13-2011, 05:45 PM
Our corporate tax rates are obscenely high, whether or not there are huge loopholes that only a few have the ability exploit. (not to be confused with personal income taxes, which are near historic lows)

Our insane corporate tax policy is encouraging companies to do business overseas and never repatriate the profit because our statutory tax rate is far greater than our peers. That screws the smaller and medium-sized businesses who have no choice but to pay the full bill.

Our corporate tax system needs to be simplified with most of the breaks and loopholes wiped out, and the rate lowered to a level that would be competitive in a post-loophole system.

That's too much of a common sense take.

petegz28
07-13-2011, 05:48 PM
A couple of issues.

How can anyone complain that our corporate tax rates are out of control? Are there countries that are beating -5%?

They should be creating enough jobs on their own to turn this turd of an economy around. Low taxes equal job creating magic.

Global Corporate Tax Rate Comparisons
http://en.wikipedia.org/wiki/File:Income_Taxes_By_Country.svg

We have the highest of them all...35% Fed + 12% State

jiveturkey
07-13-2011, 06:19 PM
I understand that our rates are high but stories like this do little to help public perception.

How does our average effective rate stack up internationally?

petegz28
07-13-2011, 06:31 PM
I understand that our rates are high but stories like this do little to help public perception.

How does our average effective rate stack up internationally?

Apparently not well seeing as capital is flowing out of this country at ever increasing rates.

cdcox
07-13-2011, 08:54 PM
News Corp actually paid 4.8 Billion in taxes. The earlier report was in error.

KILLER_CLOWN
07-13-2011, 10:31 PM
News Corp actually paid 4.8 Billion in taxes. The earlier report was in error.

Leave it up to Reuters to post conspiracy theories, haha!

July 13, 2011

Editor's Note: Reuters issued an advisory indicating that the column written by David Cay Johnston, on which this interview with Johnston was based, was wrong:

"Please be advised that the David Cay Johnston column published on Tuesday stating that Rupert Murdoch's U.S.-based News Corp made money on income taxes is wrong and has been withdrawn. News Corp's filings show the company changed reporting conventions in its 2007 annual report when it reversed the way it showed positive and negative numbers. A new column correcting and explaining the error in more detail will be issued shortly."

http://www.npr.org/2011/07/13/137811869/how-news-corp-received-billions-in-tax-refunds

prhom
07-13-2011, 10:46 PM
A new column correcting and explaining the error in more detail will be issued shortly."

http://www.npr.org/2011/07/13/137811869/how-news-corp-received-billions-in-tax-refunds

...and will be printed in such an obscure place that no one will ever see it. Good catch on this one.

KILLER_CLOWN
07-13-2011, 10:49 PM
...and will be printed in such an obscure place that no one will ever see it. Good catch on this one.

CDCox pointed it out, i just found it.