Expounding on tax avoidance as rampant from the technology sector, the Senate's Permanent Subcommittee on Investigations said tech companies used intellectual property, royalties and license fees in tax havens like the Cayman Islands to skirt U. S. taxes. "The high-tech industry is among the No. 1 user of these kinds of offshore entities to transfer intellectual property, " Senator Carl Levin, chairman with the panel, said at a media conference. "The tax practices and gimmicks vary from egregious to dubious validity. " The investigative panel's findings came hours in advance of a hearing Thursday, at which Levin is planned to reveal further details in order to take testimony. Witnesses set to be able to testify include tax executives by Microsoft and Hewlett-Packard, a levy executive from Big Four human resources firm Ernst & Young ERNY. UL, and senior officials on the U. S. Internal Revenue Assistance. Levin has been investigating offshore tax evasion for years and often issues reports calling care about the issue. The committee mentioned that from 2009 to 2011, Microsof company shifted $21 billion offshore, practically half its U. S. full price sales revenue, saving up to be able to $4. 5 billion in taxes on goods sold in the states. It also said the application giant shifts royalty revenue to be able to units in lower-tax nations like Singapore and Ireland, avoiding billions of dollars of additional taxes from the U. S. A spokesman for Microsoft couldn't be reached for comment. The panel said Hewlett-Packard funded U. S. operations with a steady stream of intercompany loans, using an exception from the law for short-term loans, in order to avoid billions of dollars in taxes.
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