U.S. corporations have reported to the Internal Revenue Service that 54 percent of their offshore profits are earned in 12 tax haven countries that, combined, only account for 4 percent of economic output among all countries where U.S. corporations do business.

A new report by the advocacy group, Citizens for Tax Justice, casts doubt on this claim, however. For example, U.S. companies reported subsidiary profits in Bermuda of $94 billion in 2010, when that country’s gross domestic product in terms of total output of goods and services was only $6 billion. Similarly, American companies reported $51 billion in Cayman Island profits, even though its GDP was just $3 billion.

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