needed a tax expert to comment on a report about tax gaps for Amazon, Apple,
Facebook, Google, Microsoft and Netflix, they turned to the TCU Neeley School
assistant professor of accounting at the TCU Neeley, provided insights into a
report that said the Silicon Six used legal tax strategies to pay $155.3
billion less, collectively by the companies across all global territories in
which they operate, than what the actual taxes would have required.
The report used cash taxes paid from cash flow
statements and cash provisions from income statements and matched those against
the companies’ profits between 2010 and 2019.
Google and Amazon
debunked the report.
Fortune writer Erik Sherman said that tax
discussions often come down to intricacies in accounting and a complex
interplay of numbers; for example, the difference between the provision for
income taxes, which aren’t a final statement of taxes, and the actual cash
effective tax rates, on average, are lower than GAAP [standard U.S. accounting]
effective tax rates,” Lusch is quoted as saying in the article. “It’s not
surprising that someone looking to highlight low tax rates for tech
multinationals will focus on the cash rate, while the company, seeking to
combat the perception of ‘not paying its fair share,’ will focus on the GAAP
rate in its rebuttal. As usual, the truth ultimately probably lies somewhere in
entire article on the Fortune website here.