raj@homxb.att.com (Rajeev B Patil) (02/22/90)
Having followed the AT&T vs. Japanese companies debate, I found the following article very interesting. The New York Times Feb 18, 1990 Page 1 "IRS Investigating Foreign Companies For Tax Cheating" Excerpts from the article: "...Federal tax officials are investigating many American subsidiaries of Japanese companies on the suspicion that they have underpaid corporate income taxes by billions of dollars." " As foreign-owned assets in the United States more than tripled in a decade to $1.8 trillion, the gross income ... more than doubled. But the total taxes they paid hardly changed ..." " Tax officials assert that some subsidiaries understate income, thus minimizing tax liability, by manipulating transactions with parent company." No wonder the Japanese products are cheaper !!!! Rajeev
john@bovine.ati.com (John Higdon) (02/24/90)
Rajeev B Patil <raj@homxb.att.com> writes: > " Tax officials assert that some subsidiaries understate income, thus ^^^^^^ > minimizing tax liability, by manipulating transactions with parent > company." > No wonder the Japanese products are cheaper !!!! Until all this is proven somewhere, I wouldn't "ah-HA" too much. Remember, the popular Japan-bashing is as much rampant in the government as it is in companies like AT&T. Just as AT&T defenders have gone off foaming at the mouth without doing any actual investigating of reality, so too have our trusty government officials. Besides, even if true, it doesn't explain why Japanese products are *better*. I think that has been explained adequately in other posts. John Higdon | P. O. Box 7648 | +1 408 723 1395 john@bovine.ati.com | San Jose, CA 95150 | M o o !