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Then the effect would be that all the taxes on facebook, google etc go to the US, not in the countries where they earn the money. The problem exist for example
by skeletal88 5y ago
Then the effect would be that all the taxes on facebook, google etc go to the US, not in the countries where they earn the money. The problem exist for example with internet advertising - the local agencies are all doing badly, advertising has moved to the internet - to google and facebook, so they receive most of the money that otherwise would be spent on local radio, print and tv advertisements, the local ad agencies organizing that would pay taxes in our country but now all the money and the taxes leave our countries and we get nothing - no taxes, and no money spent locally. this is what all the countries except the US want to avoid.
- varispeed 5y agoThe Facebook value is created in the countries they operate through the data they harvest. The work is done by people who use this service. Any Ad revenue that used targeting in the UK should be taxed in the UK. Simple as that. Unfortunately HMRC is only strong towards individuals. They wouldn't dare to go after company like Facebook. Even if they did, I am sure, given how little inspectors earn, they'd happily accept an offshore bearer account and quit.