Wal-Mart (NYSE: WMT), like any company, never wastes a chance to reduce its tax footprint in every state it operates in. In North Carolina, though, the world's largest retailer recently had a beef with taxing authorities concerning rent deduction on its tax forms for locations in that state. Problem is, Wal-Mart had to pay about $33.5 million in taxes for rent it paid to its own Wal-Mart real estate units, then pay the taxes, and now, wants a refund.A court said that it could not have a refund, and a legal beef ensued. Can Wal-Mart really take a deduction for rent on its own stores that have ownership by...Wal-Mart itself (though real estate holding units)? Another day, another tax loophole in corporate America.
The outcome here could set a precedent for other companies that pay rent to real-estate investment trust units that transfer tax-free income to their owners. In this case, the "owner" is Wal-Mart itself. According to The Wall Street Journal, Wal-Mart may have saved $230 million in state taxes over the last four years in many U.S. states where is operates store locations.
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Reader Comments (Page 1 of 1)
3-25-2008 @ 5:52PM
cindy kelly said...
seems to me with Wal-mart saving millions to the american people...they are to be applauded!! while the president and others are for foreign nations..it's here in America where we need to make a difference!! Thank you Wal-mart..about the Taxes...the Government has there reward!! It's time they give you what you deserve the refund! ha...I say yes, you can rent your own store!! after all they slap on penelities...to make up for that in one company!! Seems to me they print the green when they want it!! For stuff like research of unnecessery whatevers...! I say---let you all keep the dough!!@!for doing what they should be doing!! taking care of the U.S.
1-07-2008 @ 4:56PM
NickP said...
This is just walmart doing one of the things it does best.....avoiding taxes so that the taxpayers can pick up the tab while they think they are "saving".
1-08-2008 @ 9:13AM
wally said...
walmart is great a box of cerael is $ 4 at the grocery store. its $ 2 at walmart. One more thing......... Are you a dumbass ?