Abstract

This research is a study of two methods used for international tax evasion. One is a government-instituted corporate tax loophole known as Permanently Reinvested Earnings, which allows a corporation to hold earnings invested in a foreign subsidiary at no tax liability.  The second is the tax evasion tactic known as the Double Irish Dutch Sandwich, in which a corporation sets up two Irish and one Dutch subsidiary and routes their earnings through them in such a way as to pay minimal taxes, before sending them to a home in a tax haven such as the Cayman Islands. We will examine the ethical implications of these tax evasion purposes, and their effect on the United States economy. This thesis is based on an examination of secondary sources such as U.S. and international tax codes, scholarly publications, and current events reporting.  The research should prove helpful to the ethically minded company to determine appropriate means of reducing their income tax liability while still doing their civic duty towards their country.