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Elon Musk PHOTO: Reuters
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Zero dollars federal tax will pay “Tesla”, the company of Elon Musk.
The reason is that the company’s operations in the United States brought it losses of $ 130 million last year on a pre-tax basis. Tesla says all pre-tax profits of more than $ 6 billion come from overseas operations, although 45 percent of its revenue comes from sales in the United States.
It turns out that foreign taxes amount to $ 839 million, while the state tax bill is only $ 9 million and the federal tax bill is zero.
According to Martin Sullivan, chief analyst at Tax Analyts, a non-profit tax publisher and expert on corporate tax practices in the United States, this is a common practice of US multinational corporations – structuring their operations so that foreign subsidiaries are which report revenue, leaving the US operation with little or no taxable income per report.
“It’s against common sense, but it’s not against the U.S. tax code,” Sullivan added.
Musk himself announced on Twitter that he would pay $ 11 billion in federal tax.
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