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Wal-Mart caught avoiding state taxes
Today, the New Mexico Business Weekly has this breaking story.
The New Mexico Taxation and Revenue Department has upheld an $11.6 million corporate income tax assessment against Wal-Mart Stores Inc., saying the company cannot shield its New Mexico earnings by transferring them to an out-of-state holding company.
Wal-Mart improperly shifted earnings to a Deleware holding company for the "sole purpose of reducing income it reported in New Mexico for its in-state stores."
Why?
Delaware does not assess corporate income tax on its companies, so company earnings that can be attributed to a holding company there are not subject to state corporate income taxes.
Wal-Mart has been avoiding paying New Mexico millions of dollars in taxes, and the Taxation and Revenue department says Wal-Mart abused the loophole and owes the state money.
Read the entire article here.
Posted by Jeremy - May 22, 2006 04:29 PM - Hard to Believe