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>The other thing companies do is set up plenty of shell/thin corporations around the world, assign the IP rights to those in minimal tax countries, and then cha
by crdoconnor 10y ago
>The other thing companies do is set up plenty of shell/thin corporations around the world, assign the IP rights to those in minimal tax countries, and then charge massive internal fees so that all the rest of the organisation barely makes a profit. This sort of thing seems to be the same level of loop-hole as setting up multiple companies so that the CxO's can get paid more.
All it takes to end this practice is for the tax authorities to take a dim view of it.
Starbucks and Google were both caught by this and although they didn't pay a fine as large as they should have done, with a nod and a wink, they did end up paying more.
The economic system is nowhere near as immutable to change as certain people would like you to believe.
The swift reaction by BlackRock to the government simply making noises in particular was noteworthy:
https://www.theguardian.com/business/2017/jan/15/blackrock-demands-cuts-to-executive-pay-and-bonuses https://www.theguardian.com/business/2017/jan/15/blackrock-d...