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The IRS collected $3.4 billion from GlaxoSmithKline for allegedly cheating on its taxes. The irs contended in which it evaded taxes by making several inter company transactions to foreign affiliates regarding two of its patents and trademarks on popular drugs it transfer pricing holds. That is known as offshore tax fraud.

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Example: Mary, an American citizen, is single and lives in Bermuda. She earns an income of $450,000. Part of Mary's income will be subject to U.S. taxes at the 39.6% tax rate.

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To deal with the situation, federal, state and local governments are raising place a burden on. It doesn't matter if Republicans or Democrats have been control with the particular government. Everyone is doing it. It might be a sales tax increase, it can be a small increase income taxes or even property income taxes. The only clear thing is tax rates are inclined up and often are not kicking in till January 1, '11.

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