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The problem is not that they aren't paying taxes on their foreign income. They are evading taxes even on the income earned in US. They setup a subsidiary in a
by RealGeek 10y ago
The problem is not that they aren't paying taxes on their foreign income. They are evading taxes even on the income earned in US.
They setup a subsidiary in a offshore tax heaven, transfer their patents and intellectual property to offshore tax heaven, and then route the profits from US company to their offshore subsidiary with transfer pricing tricks.
Some of these companies claim that their headquarters are in Switzerland, Ireland or Cayman Islands. But in reality they are nothing more than a PO box and bank account.
- WildUtah 10y agoCountries with territorial systems have to monitor transfer pricing scams. The US actually ends up with much less revenue because it doesn't care as much about internal pricing abuse.