Walmart dodged tax on nearly $2 billion, according to a whistleblower filing sent to the IRS

Walmart dodged US tax on $2 billion by routing cash through multiple countries, whistleblower says By Max de HaldevangNovember 29, 2019

Walmart, the world’s biggest company, underpaid US taxes on nearly $2 billion worth of offshore cash, according to whistleblower documents filed by a former Walmart executive to the Internal Revenue Service (IRS) in 2011, and recently obtained by Quartz.

The firm avoided nearly $200 million in taxes on that money and “dramatically” overstated its foreign tax credits in 2009 and 2010 by routing payments from Luxembourg to the United States via the United Kingdom and not declaring they came from a tax haven, the whistleblower wrote.

If Walmart claimed all the tax credits, it could have improperly avoided paying close to $600 million in total via the maneuvers, according to the files. The whistleblower argued in the documents that the company should owe all that money to the IRS. A second former executive, who shared the files with Quartz, confirmed the whistleblower’s allegations.

https://qz.com/1756717/whistleblower-alleges-walmart-engineered-2-billion-tax-dodge/