Are Cruise Lines Going to Get a Bailout?
The $2 trillion stimulus bill passed Friday, March 27, 2020, in response to COVID-19. Will the cruise lines, who are undoubtedly losing massive amounts of business right now get bailed out?
Probably not. Did you know most cruise lines do not pay federal income tax in the U.S.? That’s because most cruise lines do not incorporate or domesticate in the U.S. If they did, they would pay a lot more federal income tax to the U.S.
For example, according to this article, Carnival would have to pay approximately $600 million in corporate taxes for 2019 if it was domesticated in the U.S.
Accordingly, the cruise lines will not be included in the bailout to the extent they are not domesticated in the U.S. It makes sense… for once.
If you have questions about tax law, probate, estate planning, divorce, child custody, restraining orders, unlawful detainers, civil litigation, Mendes Weed, LLP, is here to help you during this difficult time. Please reach out to us at (925) 390-3222.
If you have been considering resolving your past-due tax liability with a collection alternative such as an offer in compromise or installment agreement, right now would be an excellent time to do it. While we cannot guarantee a favorable result, your chances may possibly be better during this People First Initiative.
We are here to help you with tax law matters, estate planning, probate, divorce, child custody and visitation, trust/estate litigation, domestic violence, civil, and elder abuse restraining orders, unlawful detainers, and civil litigation. We are able to meet with clients remotely so that you are not left without legal options. We are happy to help!
