Bank of America Corp (NYSE:BAC), PepsiCo, Inc. (NYSE:PEP) and Pfizer Inc. (NYSE:PFE) were called out in a new report about U.S. companies with massive holdings in tax havens, Squawk Box’s Eamon Javers reported on CNBC.
According to a new report from the groups Citizens for Tax Justice and U.S. Public Interest Research Group (PIRG):
“Many large, U.S.-based multinational corporations avoid paying U.S. taxes by using accounting tricks to make profits made in America appear to be generated in offshore tax havens – countries with minimal or no taxes.”
Javers said that the report reveals that 72% of Fortune 500 companies, or 362 companies, operate subsidiaries in tax havens. Furthermore, the report exposed that profits of U.S. multinationals claimed in Bermuda were 1,643% of Bermuda’s GDP. Profits of US multinationals claimed in the Caymans were 1,600% of the Cayman Islands’ GDP, Javers added.
Moreover, three Javers pointed out that Bank of America Corp (NYSE:BAC), PepsiCo, Inc. (NYSE:PEP) and Pfizer Inc. (NYSE:PFE) were among the companies called out in the new report.
The report bared Bank of America Corp (NYSE:BAC) Bank of America was discovered to have 264 subsidiaries in tax havens. This is the most number of subsidiaries in tax havens among the companies studied. PepsiCo, Inc. (NYSE:PEP) is said to maintain 137 subsidiaries in tax havens for a total holding of $34.1B. Pfizer Inc. (NYSE:PFE) was also mentioned to operate 128 subsidiaries in tax havens, holding $69B.
For their part, Bank of America Corp (NYSE:BAC) and PepsiCo, Inc. (NYSE:PEP) have reacted to the news.
Javers reported that Bank of America Corp (NYSE:BAC) said that it takes its role as a corporate citizen very seriously and pays taxes in accordance with all applicable laws and regulations.
PepsiCo, Inc. (NYSE:PEP) said, according to Javers, that they comply with tax laws in every territory they do business in.
Javers did not mention any reaction from Pfizer Inc. (NYSE:PFE).
Among investors in Bank of America Corp (NYSE:BAC) is Natixis Global Asset Management’s Harris Associates with 108.16 million shares by the end of March with a total value of about $1.86 billion. Bruce Berkowitz’s Fairholme (Fairx) also owned 98.94 million shares of the financial institution by the end of the first quarter of the year.
Donald Yacktman’s Yacktman Asset Management owned 33.02 million shares in PepsiCo, Inc. (NYSE:PEP) at the end of the first quarter. Valuation for this stake is at about $2.76 billion. Nelson Peltz’s Trian Partners also owns 12.42 million shares in the beverages company.
Ken Fisher’s Fisher Asset Management holds 30.24 million shares of Pfizer Inc. (NYSE:PFE). Aqr Capital Management managed by Cliff Asness owns 9.45 million shares in the pharmaceutical giant with a stake that’s valued at about $303.48 million.