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11-02-2022, 11:41 AM
By Chris Isidore, CNN Business
Updated 1705 GMT (0105 HKT) February 10, 2022
New York (CNN Business)Elon Musk has repeatedly bragged (or, perhaps, complained) that he'll pay more in federal taxes for 2021 than anyone has ever paid — about US$11 billion. But Tesla apparently won't pay a cent.
Tesla may not plan to pay federal taxes any time in the foreseeable future -- even though the company just reported by far its most profitable year ever. In 2021, Tesla recorded net income of $5.5 billion, and adjusted income of US$7.6 billion.
But buried in a footnote of its recent annual financial filing with the Securities and Exchange Commission, Tesla reports that its US operations lost US$130 million last year on a pre-tax basis. It claims that all of its pre-tax profits — more than $6 billion worth — came from overseas operations, even though 45% of its revenue came from US sales.
Although Tesla indicates its foreign tax bill came to $839 million, its state tax bill was only $9 million. And its federal tax bill was zero.
"That defies common sense, but it does not defy the US tax code," said Martin Sullivan, chief economist for Tax Analysts, a nonprofit tax publisher, and an expert on US corporate tax practices.
Many more details at: https://edition.cnn.com/2022/02/10/inves...index.html
Updated 1705 GMT (0105 HKT) February 10, 2022
New York (CNN Business)Elon Musk has repeatedly bragged (or, perhaps, complained) that he'll pay more in federal taxes for 2021 than anyone has ever paid — about US$11 billion. But Tesla apparently won't pay a cent.
Tesla may not plan to pay federal taxes any time in the foreseeable future -- even though the company just reported by far its most profitable year ever. In 2021, Tesla recorded net income of $5.5 billion, and adjusted income of US$7.6 billion.
But buried in a footnote of its recent annual financial filing with the Securities and Exchange Commission, Tesla reports that its US operations lost US$130 million last year on a pre-tax basis. It claims that all of its pre-tax profits — more than $6 billion worth — came from overseas operations, even though 45% of its revenue came from US sales.
Although Tesla indicates its foreign tax bill came to $839 million, its state tax bill was only $9 million. And its federal tax bill was zero.
"That defies common sense, but it does not defy the US tax code," said Martin Sullivan, chief economist for Tax Analysts, a nonprofit tax publisher, and an expert on US corporate tax practices.
Many more details at: https://edition.cnn.com/2022/02/10/inves...index.html
