International Taxation: Tax Haven Companies Were More Likely to Have a Tax Cost Advantage in Federal Contracting

United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2004-06-30 monographic deposited born digital 27 p. GA 1.13:GAO-04-856 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-04-856 P0b002ee18037b533 f:d04856 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-04-856 machine generated eng fdlp REPORT GAOREPORTS-GAO-04-856 GAO-04-856 Contractors Federal taxes Government contracts Corporations Tax administration Tax evasion Competition GSA Federal Procurement Data System Other Written Product A10710 International Taxation: Tax Haven Companies Were More Likely to Have a Tax Cost Advantage in Federal Contracting The federal government was involved in about 8.6 million contract actions, including new contract awards, worth over $250 billion in fiscal year 2002. Some of these contracts were awarded to tax haven contractors, that is, U.S. subsidiaries of corporate parents located in tax haven countries. Concerns have been raised that these contractors may have an unfair cost advantage when competing for federal contracts because they are better able to lower their U.S. tax liability by shifting income to the tax haven parent. GAO's objectives in this study were to (1) determine the conditions under which companies with tax haven parents have a tax cost advantage when competing for federal contracts and (2) estimate the number of companies that could have such an advantage. GAO matched federal contractor data with tax and location data for all large corporations, those with at least $10 million in assets, in 2000 and 2001, in order to identify those companies that could have an advantage. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-04-856/html/GAOREPORTS-GAO-04-856.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-04-856/pdf/GAOREPORTS-GAO-04-856.pdf GAO-04-856 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-04-856 Other Written Product GAO-04-856; International Taxation: Tax Haven Companies Were More Likely to Have a Tax Cost Advantage in Federal Contracting; Contractors Federal taxes Government contracts Corporations Tax administration Tax evasion Competition GSA Federal Procurement Data System