J. Richard Harvey, Jr., Distinguished Professor of Practice at Villanova University School of Law and its Graduate Tax Program, was recently quoted in The New York Times and the Financial Times about the offshore tax operations of US multinational corporations.
In an October 8 The New York Times article about the trend of American corporations reincorporating in low-tax countries, Harvey remarked that small fortunes saved by inverted companies could amount to billions in revenue lost by the federal government. “The impact in any one year may not be material, but the cumulative impact over time adds up,” he said. “Over time, more multinationals may want to expatriate or invert, and we could wake up in 10 or 20 years and it might be a meaningful number.”
Harvey spoke the following week with the Financial Times about Ireland’s recent decision to close a legal loophole that enabled Apple to save tax on $44 billion of offshore income. He commented in the October 15 edition, “I will believe it when I see it. One doubts businesses like Apple will be paying the 12.5 per cent Irish tax rate on approximately two-thirds of their global income.”
Professor Harvey has written and spoken extensively on the topic of offshore tax operations by US multinational corporations. He testified before the U.S. Senate Permanent Subcommittee on the offshore tax practices of Apple, Inc. in May 2013.
To read The New York Times article, “New Corporate Tax Shelter: A Merger Abroad,” in its entirety, click here.