3 ms·
Couldn't any member state just choose to tax daughter companies in their own country, whether or not those daughter companies were buying IP from the mother com
by m12k 7y ago
Couldn't any member state just choose to tax daughter companies in their own country, whether or not those daughter companies were buying IP from the mother company in Ireland? Basically choose not to accept transfer pricing as actually reducing the profits in their country, so just tax them anyway. Is this actually against any EU charter? Because my impression was that EU basically does not have jurisdiction over how each country taxes companies within its borders, only that they have to do so uniformly (cf. the fine on Ireland and Apple where they were taxing Apple less than other companies in Ireland). As far as I can tell, what is needed to fix transfer pricing isn't a change of the tax law in tax havens, it's a change of the tax law in all the other countries that want to stop being exploited by them.