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New Report Sheds Light on Walmart’s Overseas Tax Havens

Nancy-PayYourFairShareAmericans for Tax Fairness released a new report yesterday that sheds light on Walmart’s placement of at least $76 billion in assets into an elaborate, undisclosed web of 78 subsidiaries and branches in 15 offshore tax havens, which may be used to minimize foreign taxes where it has retail operations and avoid U.S. taxes on those foreign earnings.

The report, titled The Walmart Web: How the World’s Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes, shows that the retail giant has made tax havens central to its growing International division, which now accounts for one-third of the company’s profits. Walmart’s network of 78 undisclosed overseas subsidiaries in tax havens have no retail operations and few, if any, employees. Twenty-two of these paper companies are in Luxembourg alone, a country that plays a central role in the company’s tax haven network.

The retail giant has avoided scrutiny of its international tax dodging in the past by declining to disclose its tax haven subsidiaries on Exhibit 21 (“Subsidiaries”) of the company’s annual 10-K filing with the U.S. Securities and Exchange Commission.

“Companies use tax havens to dodge taxes. It appears that’s the secret game Walmart is playing,” said Frank Clemente, executive director of Americans for Tax Fairness. “We are calling on Congress, federal agencies and international organizations to determine if Walmart is skirting the law when it comes to reporting its use of tax havens, using various schemes to dodge taxes, and getting a sweetheart deal from Luxembourg that is the equivalent of illegal state aid. Average Americans and small businesses have to make up the difference when Walmart doesn’t pay its fair share of taxes.”

Workers in LA begin 24-Hour fast & will rally for an end to retaliation and call for $15 an hour and full-time hours

While Walmart continues to dodge questions about the recent sudden layoff of 2,200 workers ahead of upcoming shareholder meeting

DSC_6643LOS ANGELES – Ahead of the company’s June 5 shareholder meeting, Walmart workers in major cities across the country are holding rallies and marches this week, calling for CEO Doug McMillon and the Walton family to end the retaliation against workers who speak out for change, and to publicly commit to pay a living wage of $15 and provide access to full-time hours. Here in Los Angeles, two dozen Walmart workers will begin a 24-hour fast today to highlight the hunger many Walmart associates and their families endure due to the company’s low wages and insufficient hours.

Earlier this year, Walmart caved to worker pressure and announced it would raise wages for 500,000 U.S. associates. But despite the modest increase—and without any guarantee of adequate hours —many workers are still forced to rely on government assistance programs like food stamps to get by. Meanwhile, the company escalated its retaliatory actions against associates to a new level last month when it abruptly closed five stores and laid off more than 2,000 workers, citing “plumbing issues.” Walmart has failed to offer any conclusive evidence of a plumbing emergency that would require the immediate closing of five stores. Workers at the Walmart store in Pico Rivera, Calif., one of the stores closed for alleged plumbing issues, are calling on the company to commit publicly to reinstating all laid off workers when the store reopens for business and to allow all workers, for the time being, to be transferred to one of the nearby 45 Walmart stores.

Walmart workers are prepared to demand change and accountability from the world’s largest retailer at the company’s upcoming shareholder meeting. Worker shareholders will present two resolutions intended to reign in executive compensation and incentivize sustainable investment, such as fair wages and benefits for workers.

 

              WHAT:   Walmart workers rally against retaliation and for $15 and full-time

              WHEN:   Thursday, May 28, 2015 at 5:30 p.m.

              WHERE:   Cesar Chavez & Broadway Blvds in Chinatown, Los Angeles

              WHO:       Fasting Walmart workers, community leaders, members of the clergy, elected  officials

              RSVP/FOR MORE INFORMATION: Marc Goumbri, 202-257-8771,mgoumbri@ufcw.org

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LEGAL DISCLAIMER: UFCW and OUR Walmart have the purpose of helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards and their efforts to have Wal-Mart publicly commit to adhering to labor rights and standards. UFCW and OUR Walmart have no intent to have Walmart recognize or bargain with UFCW or OUR Walmart as the representative of Walmart employees.

Walmart Worker-Shareholder Reacts to Q1 Earnings Report

Overview of Walmart’s first quarter sales report:

  • WMT reports 1st quarter results below expectations
  • EPS was $1.03 vs an expected $1.05; revenue was $114 billion vs an expected $116.2 billion
  • Same store sales of 1.1% at WMT US and just 0.4% at Sam’s Club were below the 1.5% gain expected for both segments
  • Promised investments in labor were disappointing, and amounted to less than analysts had expected for the quarter

OUR Walmart member and Walmart shareholder Teresa Adams of Pico Rivera, Calif., today, issued the following statement in response to Walmart’s Q1 earnings report:

“Walmart’s weak earnings report this morning is telling, but it’s nothing new for the countless number of associates nationwide who have been calling for a change to the company’s low-road, low-wage business model over the past few years. When workers who are committed to the company’s success can’t secure much-neeWM RUS_Fotorded pay and hours, they aren’t the only ones who suffer. Customers lose, and so do shareholders. Shelves aren’t properly stocked. Check-out lines are long. And the company’s reputation takes a hit when its employees don’t make enough money to stay off government assistance programs, At a time when Walmart needs to be investing more in its employees and stores, it closes four apparently profitable stores and lays off a reported 2,200 workers, while grasping at straws to justify the move. I think it’s no coincidence that OUR Walmart members were active in one of those stores.

“My fellow OUR Walmart members, like Shannon Henderson who made about $13,000 last year working as many hours as Walmart would let her, and I have been working to offer solutions to the problems that plague the company and its operations. CEO Doug McMillon has responded to one of our demands by raising wages for those of us at the bottom of the ladder, but it’s not enough. We all need higher wages and, even more importantly, we need more hours for ourselves and for our customers.

 “OUR Walmart Associate-shareholders are going to the upcoming Walmart annual shareholder meeting, where we have submitted two shareholder proposals. We are encouraging shareholders to use their votes to rein in executive compensation and incentivize sustainable investment, such as fair wages and more hours for workers.

 “It’s long past time for Walmart and the Waltons to take an honest and candid look at the concerns raised by investors, shareholders and customers. Treating associates with respect and providing adequate staffing and hours are fundamental to putting Walmart on the path to strong sales and success. And that’s the direction Walmart needs to go.”

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LEGAL DISCLAIMER: UFCW and OUR Walmart have the purpose of helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards and their efforts to have Wal-Mart publically commit to adhering to labor rights and standards. UFCW and OUR Walmart have no intent to have Walmart recognize or bargain with UFCW or OUR Walmart as the representative of Walmart employees.