log 8 - Wal-Mart has been coming up with great ideas in...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Michelle Abbott 810803787 BCOR-1010-113 Wal-Mart has been proposing numerous ways in order to cut down the amount of state taxes that they have to pay. They hired the company Ernest & Young in order to fulfill this goal, helping them come up with different potential tax strategies. Some of them took a very aggressive approach with considerable risk, therefore making the reward a substantial amount if it was performed correctly. Not only did Ernest & Young hope to cut taxes, but also to more efficiently manage its real estate and help raise their capital. On average, Wal-Mart has paid taxes at a rate equal to about half of the average state rate over the past decade. Different strategies that they used were transferring ownership of its stores to various in-house real-estate investment trusts, which ended up saving them an estimated $230 million on their tax bill. They also have a small presence in foreign countries with low tax rates.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Wal-Mart has been coming up with great ideas in order to make their profits increase. The way that they use different strategies in order to pay fewer amounts of taxes is really good for the business. The more taxes that a company has to pay, the less money they will have for the business and also to give out to the stockholders. Their business is acting remarkably with going outside of the box in order to think of ways that will keep their company in good shape. I think that it is good that Wal-Mart tries to hard in order to cut down on their tax bills. If they keep this up for decades in the future, then overall it can potentially save them a lot of money. Companies who dont take approaches like this and only take the safe road will not succeed as much as Wal-Mart will in the future. Drucker, Jesse. (2007 October 23). Inside Wal-Marts Bid To Slash State Taxes. Wall Street Journal. Pp A1, A17...
View Full Document

Page1 / 2

log 8 - Wal-Mart has been coming up with great ideas in...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online