Walmart Web: How the World’s Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes

Source: Frank Clemente, Marc Auerbach, Americans for Tax Fairness, June 2015

From the summary:
A groundbreaking report reveals that Walmart has built a vast, undisclosed network of 78 subsidiaries and branches in 15 overseas tax havens, which may be used to minimize foreign taxes where it has retail operations and to avoid U.S. tax on those foreign earnings. These secretive subsidiaries have never been subject to public scrutiny before. They have remained largely invisible, in part because Walmart fails to list them in its annual 10-K filings with the U.S. Securities and Exchange Commission (SEC). Walmart’s preferred tax haven is Luxembourg, dubbed a “magical fairyland” for corporations looking to shelter profits from taxation. The report, The Walmart Web: How the World’s Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes, is the first-ever comprehensive documentation of the company’s use of tax havens. …
• Walmart has established a vast and relatively new web of subsidiaries in tax havens, while avoiding public disclosure of these subsidiaries. ….
• Luxembourg, dubbed a “magical fairyland” by one tax expert because of its ability to shelter profits from taxation, has become Walmart’s tax haven of choice. ….
• Walmart has made tax havens central to its growing International division, which accounts for about one-third of the company’s annual profits. ….
• There is evidence that Walmart uses its subsidiaries in tax havens to pursue well-known international tax-avoidance strategies: ….
• Walmart appears to be playing a long game – from tax deferral to profit windfall. ….
• U.S. and foreign authorities should investigate Walmart’s tax avoidance. ….

Walmart has 78 subsidiaries and branches and $76 billion in assets in 15 offshore tax havens, and zero stores.

chart of Walmart stores & subsidiaries

Key Findings
Press Release
Sharable Graphics