reddituser7542 t1_jabap51 wrote on February 28, 2023 at 4:40 AM

Reply to comment by 1714alpha in [OC] Capital One’s 2022 Income Statement Visualized by Square_Tea4916

Your larger point is valid and stands. At the same time this may be due to compulsion and not by choice. If they could domicile in caymen and still offer financial services in US, they would.

Also, being a bean counter here, but the tax paid is little over 20%. Should be calculated as percentage of pre-tax income, and dividend is taken out of the net income after tax.

1714alpha t1_jabbwg1 wrote on February 28, 2023 at 4:51 AM

True, should've counted pretax. I wonder what the other cheater companies are doing that Capital can't afford to do? Seems like they should be able to take advantage of as many scummy loopholes as the next 800lb gorilla. I don't believe for a moment that they pay one red cent more than they can get away with, or do it out of the goodness of their greedy little hearts.

Is this evidence of stronger corporate tax laws than we are generally given to believe? Or, more likely, is there other financial monkey business that can be done after this calculation that effectively reduces the total tax:profit ratio?

Obvious_Chapter2082 t1_jadb752 wrote on February 28, 2023 at 4:50 PM

The foreign impact on ETRs really isn’t large anymore, since the US taxes global corporate income. I would just assume they don’t have a lot of R&D or don’t pay a lot of stock compensation