4 ms·

Are countries with a territorial tax system hurt by businesses leaving in order to seek out a lower tax rate? That seems to be the argument the US government is

• Someone1234 11y ago
  They do. But it doesn't work even in the US's case. US companies will routinely "sell" their intellectual property to a subsidiary in e.g. Ireland and then license to back to the US company to avoid paying US taxes. There are some highly successful US companies who, per the books, make nearly $0/year profit within the US.
  • wiredfool 11y ago
    They should charge executives Irish income taxes if they pull that off. (While Ireland's corporate taxes are low, their personal taxes are ~59% over ~100k, and that _includes_ capital gains, and a lot of things that are tax advantaged in the states)
    • talideon 11y ago
      The loophole[1] regarding tax residency allowing a company to be effectively stateless was closed a while back. That was one of the things being exploited in this. The net effect, however, was that the companies in question just started using the Caymans and other similar jurisdictions. [1] This explains the loophole that was closed: http://www.pearse-trust.ie/blog/bid/102942/Changes-To-Irish-Corporate-Tax-Residence http://www.pearse-trust.ie/blog/bid/102942/Changes-To-Irish-...
    • deleted 11y ago
      [deleted]