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All of those can be applied to any company however. By this logic, they should add a +3% tax on every foreign business. None of this is true. It is a protectio
by buboard 7y ago
All of those can be applied to any company however. By this logic, they should add a +3% tax on every foreign business.
None of this is true. It is a protectionist / anti-tax evasion measure primarily. It can be justified considering the threat that amazon poses in local markets
- SiempreViernes 7y agoI don't know why you just ignore to comment on the justification given: that big tech companies engage in blatant tax evasion.
- buboard 7y agonot sure what you mean
- rtkwe 7y agoDouble Irish with a Dutch Sandwich. Companies like google can charge their profitable branches in other countries royalties to use Google software or platform moving the profits out of a higher tax country like France into Ireland where there's little to no tax. Even after they patched the Dutch part that allowed even the marginal Irish taxes to be avoided companies can still artificially lower their profit by transferring IP to an Irish company and charging for it's use. https://www.investopedia.com/terms/d/double-irish-with-a-dutch-sandwich.asp https://www.investopedia.com/terms/d/double-irish-with-a-dut...
- buboard 7y agoyes of course how did i ignore to comment. i said > It is a protectionist / anti-tax evasion measure primarily
- vonmoltke 7y agoHas any country explored options for shifting to a revenue tax to eliminate such games entirely?
- rtkwe 7y agoI don't know honestly. Seems like a tough road to go down because there are legitimate ways for a business to have high revenues relative to their profits like low margin businesses and you don't want to stamp them out accidentally targeting this kind of dodge.
- JAlexoid 7y agoThis tax is exactly that.
- AdrianB1 7y agoIt is done intentionally by countries like Ireland that otherwise would have zero interest from any investors. And this loophole is actually the foundation of the EU free market: you can produce something in a country, sell in another one, pay VAT in the destination country but pay profit taxes in the origin country. What France and others want is to pay profit taxes also in the destination country, on top of VAT.
- mywittyname 7y agoTax cross-country licensing fees at some absurd rate.
- IshKebab 7y agoHe's saying that this tax exists because large tech companies are in a position to easily evade the taxes that most businesses have to pay.
- luckylion 7y ago> All of those can be applied to any company however. And they tax any company that fits the profile, be they German, Japanese, Chinese, French, or, god forbid, US-American.
- greatpatton 7y agoForeign business which are not internet based pay taxes. Your point is irrelevant.
- JAlexoid 7y agoForeign businesses that deliver products and services from local branches, without IP value shifting - pay enough taxes to not be a problem.
- umeshunni 7y ago> By this logic, they should add a +3% tax on every foreign business. That's precisely what a tariff is.