Newly Released Documents Reveal Continued Pattern of "Creative Accounting" by Wal-Mart

World's Largest Retailer Could Owe $2.5 Billion in Taxes Revealed by New Accounting Rules

Washington, DC--New documents released in a North Carolina court case against Wal-Mart reveal that the retail giant actively and aggressively sought ways to deprive states of much-needed tax revenue.

"Wal-Mart is a multi-national corporation with $12 billion in profits last year. Apparently Wal-Mart believes that buys them an excuse to not pay state income taxes like everyone else," said Meghan Scott, spokeswoman for WakeUpWalMart.com. "Time and again, Wal-Mart has short-changed America's schools, infrastructure and taxpayers by avoiding paying its fair share."

The Wall Street Journal today reported that in its partnership with accounting giant Ernst & Young, Wal-Mart had one express purpose: to cut its state income taxes.

These tactics, which Ernst & Young described in its proposal as "very aggressive," and "with considerable risk," are nothing new to Wal-Mart.

A new, legally-required disclosure by Wal-Mart reveals that a potential audit by tax authorities could find as much as $2.51 billion in taxes owed, and a further $177 million in associated penalties and interest.

"Wal-Mart has admitted to more than $2.5 billion in unpaid taxes that are more likely than not to be owed to tax authorities," Scott said. "It is outrageous that Wal-Mart, the #1 company on the Fortune 500, is shifting billions of dollars of its costs onto taxpayers. Hard-working American families should not have to subsidize Wal-Mart's irresponsible corporate behavior. The American people deserve better from Wal-Mart."