U.S companies have a lot have money than they are letting us know is the recent report of ''hoarding'' money is any thing to go by. The report claims that in total the US companies are ''hoarding '' over $2 trillion. So, the financial status presented to the media is not true.
The way most of these deals work is that a big American company buys a smaller foreign one. But then the org chart flips over: The little foreign company’s headquarters become, at least on paper, the HQ of the new global company. The large American company is now a foreign one, and taxed according to that country’s rules.The United States has what’s known “worldwide” taxation, meaning that corporations owe income taxes on profits wherever they earn them. But the company still owes taxes on whatever profits it earns in the U.S.
Lawyers, tax accountants and financial advisers are very intelligent. They know the ins and outs of the laws and what is actually legally required to be documented. There are also ways in which international business affairs and financial negotiations play out that make the businesses seem more or less prosperous than they are, depending on their goals.
It is hard for U.S. Companies to hide money because they have an auditing process. Companies have to make a profit in order to exist. It is an incorrect assumption to think that a company is wealthy simply because it is a company. Many companies are struggling to get by, just like people.