by Craig Stephens
While the dust is still settling over the recent stranded Triumph cruise liner, its owner carrier Carnival Cruises is now causing controversy over alleged tax free revenue and unpaid coast guard fees.
According to Carnival’s own 2012 annual report, Carnival and CEO Micky Arison made $7.952 billion in North American Revenue. Meanwhile, as Carnival is incorporated in Panama, it does not have to pay taxes on profits in North America even though 51.7% of its revenue comes from North America. This, despite of the fact that in 2012, it had an operating income of $1.277 billion from its North American Cruise Brands.
In turn, critics claim Carnival is making over a billion in tax free operating income while competing against U.S. businesses. It also exploits U.S. agencies such as the Coast Guard at no cost.
In the wake of the recent Carnival Triumph debacle, Carnival has yet to pay anything for Coast Guard’s services.
Carnival Cruise Lines is a British-American owned cruise line, based in Doral, Florida, a suburb of Miami in the United States. Originally an independent company founded in 1972 by Ted Arison, the company is now one of ten cruise ship brands owned and operated by Carnival Corporation & plc. The company has the largest fleet in the group, with 24 vessels currently in operation that account for 21.1% of the worldwide market share.
Hence, at a time when many in the U.S. talking about cutting government services, this could be deemed an oversight. Many claim it’s time to examine the corporate tax loopholes in this thriving business which places a greater burden on the middle class.
Carnival Cruise Annual Reports: http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-reportsother2