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How do they "exist" in the EU? One way to see it is that people from the EU are simply buying services from a US company. It's as if they caught a plane, and pa
by DVassallo 9y ago
How do they "exist" in the EU? One way to see it is that people from the EU are simply buying services from a US company. It's as if they caught a plane, and paid at a cash register in California. But instead of making the trip, they just sent a check.
- Oletros 9y ago> One way to see it is that people from the EU are simply buying services from a US company I would like how they do businesses, including Amazon and Apple if they leave the EU because the way you see it is totally wrong. Starting with data protection directives and following with dealing with VAT, and EU customers
- seszett 9y ago> How do they "exist" in the EU? They both have headquarters in Dublin.
- Oletros 9y agoAnd physical presence in almost every EU country
- DVassallo 9y agoSo if they didn't have a physical presence in the EU, then it would have been fine not to tax them?
- DannyBee 9y agoWhich i'm sure they would happily burn to the ground if it meant they weren't taxed there. I don't think you want to go with the argument of physical presence. It rarely works well with any multinational.
- seszett 9y agoWell in the meantime these offices do exist, and they also employ people in quite a few EU countries[1]. So that's the reality they have to live with. [1] https://www.facebook.com/careers/locations/ https://www.facebook.com/careers/locations/
- Oletros 9y ago> It rarely works well with any multinational. how many multinationals have left any big market just for taxation?
- ringtail 9y agoAre you saying Singapore Co cannot receive payments from French consumers unless they pay corporate income tax to French Govt ? In other words, you are saying EU can deny its citizens right to buy foreign products ?
- Oletros 9y agoNo, I'm asking how many multinational have left a big market (one of the biggest in the world) just for taxation.
- ringtail 9y agoBut what do you mean by "leaving a market" ? MNCs have been doing restructring for decades for reasons ranging from regulations to taxes. If Google do leave EU, all it will do is legal maneuvering. Nothing will change for EU consumers. They can still do Google searches and buy ads. Profit will stay the same.
- Oletros 9y ago> But what do you mean by "leaving a market" Pulling off any presence in that market, offices, stores, etc. > If Google do leave EU, all it will do is legal maneuvering. Nothing will change for EU consumers. They can still do Google searches and buy ads. Profit will stay the same. No, because there is all of the burden of a company from outside the EU doing business with EU companies. And not talking about the restriction on data protection. And don't talk about companies like Amazon or Apple with physical goods
- ringtail 9y agoBenefit of Sales/Stores are insignificant compared to proposed tax liability. All these can/will be outsourced the moment it becomes reality. How would EU calculate profit share between US R&D and Ireland R&D ? Even if EU do tax R&D, exodus of talent will be just 2x salary increase away.
- la_oveja 9y agoIf you're selling something in the EU, you gotta stick to EU laws. It's not about where is the company from, it's about where it's making business. Simple as that.
- tormeh 9y agoEU companies pay for advertising there. You know, their customers. They sell to customers in the EU. The social network/search thingy doesn't have any relevance to tax - it's their advertisement business governments want a slice of. If there's any problem with taxation any country can order its banks to not process payments to Google/Facebook. Tax authorities don't give a shit who hosts the citizenry's family photos. That's not what "operating in" a country means.
- ringtail 9y agoBanning 2 corporations is one thing and banning all offshore corporations another. Would citizens go along with this ? Never.