Tesla CEO Elon Musk has repeatedly raised the issue of paying US$11
billion in taxes to the US government last year. Whether boasting, or
complaining, what is certain is that he boasts that the taxes he pays are
greater than the taxes of anyone in the world.
However, he warned that his electric car company Tesla would not
necessarily pay taxes to the state. Although, the company recorded a net
profit of US$5.5 billion with revenues of US$7.6 billion.
The reason, as reported by CNN Business, Friday (11/2), Musk said that
Tesla lost US $ 130 million in revenue last year. In addition, more than
US$6 billion of its revenue last year came from the company's operations
outside the US.
That means, Tesla will pay their taxes overseas. Musk detailed his foreign
tax bill at $839 million. Meanwhile, the tax bill for the states in the
area of operation is only US $ 9 million, and the state tax bill is
zero.
"Indeed, it seems against common sense, but not against the tax laws in
the US," adds Martin Sullivan, Tax Analyst, Non-Profit Tax Publisher, and
Specialist in Corporate Tax Practices in the US.
Sullivan said Tesla's income in the US is only slightly or even zero
taxable because Tesla's subsidiaries are the ones who record the revenue.
On the other hand, Tesla's operations at its headquarters have suffered
losses.
The US Treasury report said 61 percent of the profits of US multinationals
were recorded in seven countries, namely Bermuda, Cayman, Ireland,
Luxembourg, the Netherlands, Singapore and Switzerland. These countries
are known as tax havens.
This is a loophole that US President Joe Biden's Administration is
targeting to fix, given that US multinational companies often take
advantage of it.
"Tesla and other corporate giants have long used fraud and loopholes to
help them get out of tax liability, it has to stop," said Senator
Elizabeth Warren, who is known for being a frequent critic of Musk.