Both Hillary Clinton, who promised to crack down on “outrageous tax havens and loopholes” if elected president, and Republican presidential candidate Donald Trump have business dealings registered at a building in Wilmington, Del., that is famous for helping Wal-Mart, Apple, American Airlines and tens of thousands of other companies avoid hundreds of millions of dollars in taxes through the so-called “Delaware loophole,” reports Rupert Neale at The Guardian.
[The] squat, yellow brick office building just north of Wilmington’s rundown downtown is the registered address of more than 285,000 companies. That’s more than any other known address in the world, and 15 times more than the 18,000 registered in Ugland House, a five-storey building in the Cayman Islands that President Obama called “either the biggest building in the world, or the biggest tax scam on record”.
Officially, 1209 North Orange is home to Apple, American Airlines, Coca-Cola, [Wal-Mart] and dozens of other companies in the Fortune 500 list of America’s biggest companies. Being registered in Delaware lets companies take advantage of strict corporate secrecy rules, business-friendly courts and the “Delaware loophole”, which can allow companies to legally shift earnings from other states to Delaware, where they are not taxed on non-physical incomes generated outside of the state.
The loophole is said to have cost other states more than $9bn in lost taxes over the past decade and led to Delaware to be described as “one of the world’s biggest havens for tax avoidance and evasion”. …
Both the leading candidates for president – Hillary Clinton and Donald Trump – have companies registered at 1209 North Orange, and have refused to explain why.
Clinton, who has repeatedly promised that as president she will crack down on “outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere”, collected more than $16m in public speaking fees and book royalties in 2014 through the doors of 1209, according to the Clintons’ tax return.
Just eight days after stepping down as secretary of state in February 2013, Clinton registered ZFS Holdings LLC at CTC’s offices. Bill Clinton set up WJC LLC, a vehicle to collect his consultation fees, at the same address in 2008.
A spokesman for Clinton said: “ZFS was set up when Secretary Clinton left the State Department as an entity to manage her book and speaking income. No federal, state, or local taxes were saved by the Clintons as a result of this structure.”
The Clintons’ companies share the office with several of Trump’s companies. They include Trump International Management Corp and several companies that form part of Hudson Waterfront Associates, a Trump partnership to develop more than $1bn worth of luxury condos on the west side of Manhattan.
—Posted by Alexander Reed Kelly.
Reblogged 2 years ago from feedproxy.google.com