The problem is that it does completely the opposite. As long as the money is held offshore it isn't taxed. If the company itself spends it then it becomes a deductible expense. The only way it gets taxed is if they return it to the shareholders. Which you would think the shareholders would want, if not for the fact that the cash held by the corporation is an asset which adds that amount to the stock price, which allows the shareholder to extract as much or as little as they like by selling shares. Which itself has more favorable tax treatment than receiving a dividend. The whole system is set up to encourage international corporations to hoard money in offshore accounts.