Defer taxes on their profits from international operations

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U.S. tax laws allow companies to defer taxes on their profits from international operations until the funds are returned to the U.S. Many companies keep a significant portion of the cash in foreign bank accounts, or reinvest it in factories and/or acquisitions outside the country. What are the ethical issues associated with doing business in this manner? Next, imagine you are the CEO of an international startup. Your company’s financial health would be severely impacted (negatively) from the tax implication of keeping all of the company’s cash in the U.S. Explore this scenario and share what you would do. Share the rationale you used to arrive at your decision.

Reference no: EM13745998

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