Taxes of Foreign- and U.S.-Controlled Corporations
GGD-93-112FS: Published: Jun 11, 1993. Publicly Released: Jul 12, 1993.
- Full Report:
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 of $250 million or more did not pay income taxes compared to 33 percent of the large U.S.-controlled corporations; (3) few large foreign-controlled corporations paid income taxes of $1 million or more; (4) 88 percent of foreign-controlled and 93 percent of U.S.-controlled corporations with assets less than $100 million paid no income tax or less than $10,000 in taxes; and (5) the ratio of purchases to total receipts for all taxpaying and nontaxpaying foreign-controlled corporations was much greater than the ratio for U.S.-controlled corporations.