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Has any country explored options for shifting to a revenue tax to eliminate such games entirely?
by vonmoltke 7y ago
Has 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.