Home Info-Graphs These Are The Companies That Avoided Paying Taxes In 2020

These Are The Companies That Avoided Paying Taxes In 2020

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From Charter Communications to Nike, these are the companies that avoided paying taxes in 2020

New research from Tipalti has revealed the companies across the USA which paid $0 in federal taxes in 2020 despite a huge pre-tax income and also the most common tax penalties for corporations.

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The analysis showed that Charter Communications is the company with the biggest pre-tax income of almost $3.7 billion, yet paid $0 in federal taxes in 2020.

Meanwhile failure to pay is the most common penalty type for corporations, with over half a billion dollars in failure to pay penalties.

Corporations With Biggest Pre-tax Income That Paid $0 In Taxes

Rank Company Industry Pre-tax income Current federal income tax (including tax rebates) Effective tax rate
1 Charter Communications  (NASDAQ:CHTR) Telecommunications $3.7bn -$7m -0.20%
2 Nike (NYSE:NKE) Miscellaneous manufacturing $2.9bn -$109m -3.80%
3 Salesforce (NYSE:CRM) Computers, office equip, software, data $2.6bn -$12m -0.50%
4 DISH Network (NASDAQ:DISH) Telecommunications $2.5bn -$231m -9.10%
5 American Electric Power (NASDAQ:AEP) Utilities, gas and electric $2.2bn -$138m -6.40%
6 Danaher (NYSE:DHR) Miscellaneous manufacturing $1.6bn -$321m -20.30%
7 DTE Energy (NYSE:DTE) Utilities, gas and electric $1.5bn -$247m -16.10%
8 Xcel Energy (NASDAQ:XEL) Utilities, gas and electric $1.5bn -$13m -0.90%
9 Consolidated Edison (NYSE:ED) Utilities, gas and electric $1.2bn -$2m -0.20%
10 Nucor (NYSE:NUE) Metals & metal products $1.2bn -$177m -14.50%
  • The research showed that the telecommunications company, Charter Communications, is the company which paid $0 in taxes in 2020 and had the highest pre-tax income of nearly $3.7 billion.
  • Sports apparel company Nike ranked second, with a pre-tax income of $2.9bn, yet paid zero in taxes in 2020 and actually received a tax rebate of $109m.

Most Common Penalty Types For Corporations

Rank Type of penalty Volume Amount
1 Failure to pay 286,725 $589,311,000
2 Estimated tax 235,454 $395,982,000
3 Delinquency 51,682 $356,495,000
4 Accuracy 2,423 $53,964,000
5 Bad check 11,111 $16,909,000
6 Fraud 59 $8,932,000
7 Other 57 $7,910,000
Total 587,511 $1,429,503,000
  • In terms of the most common types of tax offences for corporations, failure to pay is the most frequent one that’s issued, with 286,725 penalties issued, totalling $589 million.
  • When it comes to corporations, only 59 fraud penalties have been issued, which have only equated to fines of $7.9 million in total

Further Findings

  • Failure to pay is also the most common tax offence for individuals and trusts, with over 19 million penalties issued, totalling $7.1 billion collected.
  • Ireland is the country which lost the most money as a result of tax offences in 2020, with 22.26% of their total tax revenue collected lost because of tax abuse.
  • Former US attorney Paul Daugerdas is guilty of what has been dubbed the biggest criminal tax fraud in history, racking up a tax debt of $1.6bn from his fraudulent tax shelters.

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