It was actually an intentional way to tax. The guy who set it up (Fritz Bolkestein apparently) did it this way deliberately, because: 1. It avoids endless argu

It was actually an intentional way to tax. The guy who set it up (Fritz Bolkestein apparently) did it this way deliberately, because: 1. It avoids endless arguments about where the profit is 'really' made, i.e. relative arguments about the value of labour vs capital vs equipment vs offices etc. However bad or stupid you think these arguments are, those would be far worse. 2. Corporation taxes are highly inefficient taxes to begin with. It puts countries in a form of competition that should drive corporation tax down to zero, which economists believe is a better state to be in. https://www.forbes.com/sites/timworstall/2016/05/24/french-tax-raid-on-google-will-run-headlong-into-eu-single-market-law/#ecc9af66131e https://www.forbes.com/sites/timworstall/2016/05/24/french-t...