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

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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.
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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 don’t 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-Mart’s Bid To Slash State Taxes. Wall Street Journal. Pp A1, A17...
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