“`html
Palantir Technologies, a major artificial intelligence and data analytics company valued at approximately $370 billion, maintains an extraordinarily low effective tax rate of just 1.4 percent globally, according to a recent investigation by the Centre for International Corporate Tax Accountability and Research. The company, which provides technology to the U.S. military, intelligence agencies, and law enforcement, has structured its operations to minimize tax obligations despite reporting soaring revenues that nearly doubled year-over-year.
The research reveals that Palantir shifts profits earned in jurisdictions like the United Kingdom and Europe to its U.S. parent company, substantially reducing taxable income where work is actually performed. In Britain alone, the company paid roughly $2.7 million in corporate taxes during 2024 despite securing over $900 million in government contracts. The company has also benefited from the 2017 reduction of the federal corporate tax rate to 21 percent. While Palantir insists its practices comply with all applicable tax laws, the arrangements have sparked ethical debate about whether firms receiving billions in public contracts should contribute so minimally to government revenue.
Founded in 2003 with backing from the CIA’s venture capital arm, Palantir has become increasingly controversial for its government partnerships. The company supplies surveillance technology to immigration enforcement agencies and maintains a strategic partnership with Israel’s Ministry of Defence, having significantly expanded operations there following October 2023.
“`
Originally reported by Aljazeera →
About the Author
