ST Alpha - "I will try to explain. -- (edited)" (Reading a Post)

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In response to "I'm not 100% certain of the line between forced repatriation of offshore earnings and a tariff. -- nm" by crash davis

I will try to explain. -- (edited)

Posted by spamlet Oct 20 '17, 11:13

Lets say you have a company that has earned money offshore. You haven't paid tax on that because you never brought it back (whether you're Apple with their tricks or a company that is simply operating offshore).

The government says we need money so we have a deal for you. Instead of waiting for you never to bring the money back and tax it, we'll just pretend you did and you can pay us a lower rate of tax. But this time it's not optional and we'll let you pay over 8 years.

The downside is that you (likely) won't be able to use foreign tax credits against that income that may have lowered your rate below even the repatriation rate. The upside is that you can bring the money back without further worry and let cash flow as needed.

Responses:

okay, but I'm just wondering what is to stop a company from moving their nominal HQ offshore? -- nm - crash davis Oct 20, 11:21 2
- A crapton of rules about it. - spamlet Oct 20, 11:32 1
  - thank you -- nm - crash davis Oct 20, 11:33

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I will try to explain. -- (edited)

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