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Logistics and distribution are low margin operations and so make small profits and so pay small amounts of corporation tax. If the operations of Apple, say, in
by derriz 7y ago
Logistics and distribution are low margin operations and so make small profits and so pay small amounts of corporation tax.
If the operations of Apple, say, in those countries are mostly logistics and distribution, then the profits of those subsidiaries will be low. By international tax law your German subsidiary cannot charge $200 per iPhone to bring it from a port warehouse to a retail outlet. It can only book a "reasonable" or arms-length profit for it's part of getting an iPhone into the hands of a consumer.
Re. clutching at straws - it doesn't contribute much to offer guesses about how confident I am with my arguments. If I were not happy with my case, I would not be putting it into writing.
- mytailorisrich 7y agoLogistics and distribution in Germany is irrelevant. What happens is that the product is re-sold from one subsidiary to the next in a way that allows to effectively locate profits arbitrarily. It is avoiding to look at reality to claim that it must be that these companies report no profits in the countries I mentioned. The reality is that this is done on purpose by clever schemes.