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From: raj@homxb.att.com (Rajeev B Patil)
Newsgroups: comp.dcom.telecom
Subject: Foreign Companies in the US
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Date: 21 Feb 90 20:16:30 GMT
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X-Telecom-Digest: Volume 10, Issue 122, message 7 of 11


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