Tax Status of U.S. Subsidiaries Becomes "Outsourcing" Issue.

The article reports that a new Government Accountability Office (GAO) report has made an issue of tax haven contractors. The GAO has noted those companies (who win federal contracts) who outsource and are able to reduce their taxable income by shifting it to tax haven operations. The article discusses legislation in the US Senate, an amendment to the JOBS Act (part of the larger FSC/ETI bill), that might eliminate this tax shelter. The US House version of the bill did not contain this amendment.