US multi-nationals holding profits in offshore tax havens to avoid normal tax rates is a major international problem. The US government is proposing a special catch-up tax of about 14% on the profits stashed overseas, followed by around 19% of new profits after that. Whether that will be agreed by Congress is doubtful. It does though show US resolve to make tax fair, for the US, and making a stand. But a big slice of those sales were in the UK, economically making profits, before being legally sent to offshore tax havens, so some feel. In effect the US wants to tax profits economically made in the UK while the UK government just stands by. So a US tax on UK profits with no UK representation. Whatever happened to “No Taxation Without Representation”?
Tax Barrister, Accountant