Tax evasion (21 - 30 of 54 items)
Business Tax Reform: Simplification and Increased Uniformity of Taxation Would Yield Benefits
GAO-06-1113T: Published: Sep 20, 2006. Publicly Released: Sep 20, 2006.
Business income taxes, both corporate and noncorporate, are a significant portion of federal tax revenue. Businesses also play a crucial role in collecting taxes from individuals, through withholding and information reporting. However, the design of the current system of business taxation is widely seen as flawed. It distorts investment decisions, hurting the performance of the economy. Its comple...
Tax Compliance: Challenges to Corporate Tax Enforcement and Options to Improve Securities Basis Reporting
GAO-06-851T: Published: Jun 13, 2006. Publicly Released: Jun 13, 2006.
Corporate income taxes are expected to bring in about $277 billion in 2006 to help fund the activities of the federal government. Besides raising revenue, the tax alters investment decisions and raises concerns about competitiveness in an environment of increasing global interdependency. The complexity of the tax breeds tax avoidance, including an estimated $32 billion of noncompliance detected by...
Tax Compliance: Better Compliance Data and Long-term Goals Would Support a More Strategic IRS Approach to Reducing the Tax Gap
GAO-05-753: Published: Jul 18, 2005. Publicly Released: Aug 17, 2005.
According to the Internal Revenue Service (IRS), a gap arises each year between what taxpayers pay accurately and on time in taxes and what they should pay under the law. The tax gap is composed of underreporting of tax liabilities on tax returns, underpaying of taxes due from filed returns, and nonfiling of required tax returns altogether or on time. GAO was asked to provide information on (1) th...
International Taxation: Tax Haven Companies Were More Likely to Have a Tax Cost Advantage in Federal Contracting
GAO-04-856: Published: Jun 30, 2004. Publicly Released: Aug 27, 2004.
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 fede...
Internal Revenue Service: Challenges Remain in Combating Abusive Tax Schemes
GAO-04-50: Published: Nov 19, 2003. Publicly Released: Dec 19, 2003.
Abusive tax avoidance schemes could threaten our tax system's integrity and fairness if honest taxpayers believe that significant numbers of individuals are not paying their fair share of taxes. Abusive schemes encompass such distortions of the tax system as falsely describing the law (saying, for example, that the income tax is unconstitutional), misrepresenting facts (for instance, promoting the...
Tax Administration: Foreign- and U.S.-Controlled Corporations That Did Not Pay U.S. Income Taxes, 1989-95
GGD-99-39: Published: Mar 23, 1999. Publicly Released: Apr 14, 1999.
Pursuant to a congressional request, GAO provided an update to its report on the nonpayment of U.S. income taxes by foreign-controlled corporations (FCC) and U.S.-controlled corporations (USCC), focusing on comparisons of: (1) the percentages of FCCs and USCCs that filed income tax returns showing no tax liabilities for 1989 through 1995, the latest years for which data were available; and (2) sel...
Information on Transfer Pricing
GGD-94-206R: Published: Sep 15, 1994. Publicly Released: Oct 17, 1994.
Pursuant to a congressional request, GAO provided information on how the Internal Revenue Service (IRS) resolves transfer pricing tax code issues. GAO noted that: (1) an IRS internal audit report pointed out problems with some international management information systems and IRS is improving them; (2) from fiscal year (FY) 1989 through FY 1993, about 40 to 50 foreign-controlled and U.S.-controlled...
International Taxation: IRS' Administration of Tax-Customs Valuation Rules in Tax Code Section 1059A
GGD-94-61: Published: Feb 4, 1994. Publicly Released: Mar 7, 1994.
Pursuant to a congressional request, GAO provided information on the Internal Revenue Service's (IRS) enforcement of section 1059A of the Internal Revenue Code (IRC), focusing on: (1) specific cases in which IRS used section 1059A to govern transfer prices; (2) the applicability of section 1059A to certain transactions between U.S. and Mexican affiliates; (3) the impact on U.S. revenues of allowin...
International Taxation: Taxes of Foreign- and U.S.-Controlled Corporations
GGD-93-112FS: Published: Jun 11, 1993. Publicly Released: Jul 12, 1993.
Pursuant to a congressional request, GAO provided information on how many taxpaying corporations in various asset categories paid a minimal amount of income tax in 1989.GAO found that: (1) 40 percent of the large corporations conducting business in the United States paid no income taxes or paid income taxes of less than $100,000; (2) 30 percent of large foreign-controlled corporations with assets...
International Taxation: Updated Information on Transfer Pricing
T-GGD-93-16: Published: Mar 25, 1993. Publicly Released: Mar 25, 1993.
GAO discussed transfer pricing issues facing the Internal Revenue Service (IRS), specifically tax payments of foreign-controlled corporations, exams, appeals, litigation, and new transfer pricing regulations. GAO noted that: (1) from 1987 through 1990, 72 percent of foreign-controlled corporations paid no U.S. income tax, compared to 59 percent of U.S.-controlled corporations; (2) although IRS has...