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I think you are completely missing what's going on... Google generates revenue in Poland. They have operations in Poland and all (so they use all the public go
by BartBoch 8y ago
I think you are completely missing what's going on...
Google generates revenue in Poland. They have operations in Poland and all (so they use all the public goods like employees, infrastructure, safety etc.). They should pay taxes in tens of millions of Euros for this. But instead, they generate fake expense in Ireland, send an invoice to the Polish office, call it "branding" or something else, the invoice is big enough to generate a loss. They do not need to pay taxes in Poland since they are at "loss".
That's the issue. Not that Ireland has a different tax system. The issue is that companies are allowed to avoid taxes by generating fake expenses and the EU prohibits other countries from doing anything with it really.
IMO 1,5% fixed tax is very attractive rate.
- sbacic 8y agoI'm genuinely curious - what operations does Google have in Poland? I was under the impression that all the "valuable" stuff was being made in the US and that their subsidiaries just handle localization, support and local sales. Is that incorrect? If that is correct, then it makes perfect sense to shift profits - after all, it's not like Google Poland just came up with their new foobuz algorithm that is providing value. They're just selling it there.
- JetSpiegel 8y ago> local sales > They're just selling it there. This is literally the money generating part, the rest are cost centers.