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Companies do use their profits in the US legally without paying tax on those profits. To avoid repatriation, companies engage in intercompany loans and the
Companies do use their profits in the US legally without paying tax on those profits. To avoid repatriation, companies engage in intercompany loans and the buying/selling of goods and services from each other under Sec. 482. Effectively, they have access to all the cash without paying taxes on the profits since they have not paid themselves dividends. How could the US Government stop the use of untaxed profits?
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