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Nations are sovereign they can do what they want. Short of going to war its hard to force a country todo something it does not want too. Although if you pull ou
by anfilt 5y ago
Nations are sovereign they can do what they want. Short of going to war its hard to force a country todo something it does not want too. Although if you pull out of agreement don't expect the other country to continue following it.
Also there are other countries not part of this talk nothings stops a company from setting up there and doing the same tax games. So i dont see how this idea does anything
- skissane 5y ago> Nations are sovereign they can do what they want. Short of going to war its hard to force a country todo something it does not want too In today's world economic pressure is a much bigger factor than war. If you upset enough countries, they can all start imposing trade and financial sanctions on you, which then ruins your economy. International law is a useful (even though of course not always perfect) guide in answering the question "is doing X going to upset a large number of countries?" > Also there are other countries not part of this talk nothings stops a company from setting up there and doing the same tax games. Most of these companies are actually headquartered in major economies – US, the EU, etc. What they've been doing is exploiting complex loophole interactions between the tax laws of those major economies and the tax laws of small countries with favourable tax regimes. If the major economies close those loopholes, they can stop most of this. The small countries only get away with it because the major economy tax law loopholes let them. Most of the time, companies don't want to move their actual headquarters to these small countries due to the negative consequences
- devdas 5y agoThe major economies are also large sources of these loopholes.