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Misleading title, it's just for large multinationals. There will be a revenue treshold of 890$ million This is good news for startups! Cancel that, this is go
by GDC7 5y ago
Misleading title, it's just for large multinationals.
There will be a revenue treshold of 890$ million
This is good news for startups! Cancel that, this is good news for the vast majority of unicorns as well.
It's still early because we have to wait and see what the loophole seekers are gonna find, but in any event, as it stands it looks like a good development for startups and VCs.
Loophole seekers are disgusting and dumb, they engineer solutions that save billions in taxes for multinationals but aren't paid proportionally. A genius in the transfer pricing dept. at one of the big 4 makes like an above average lawyer in NYC or LA.
They are more instrumental to the public company profits than the CEO in many instances.
- president 5y agoThe cynic in me says it wouldn't have been agreed on if the loopholes weren't already baked in.
- goodpoint 5y agoNothing cynical, it's lobbying 101.
- acd10j 5y agowhat will prevent an multinational to make dozens or hundreds of subsidiary with each having revenue threshold of $890 million ?
- evgen 5y agoOh wow! You found that ONE TRICK that governments HATE. Somehow thousands of legislators and economists around the world never, ever thought of that and are going to be completely fooled by a company that structures its revenues in this fashion. I am absolutely sure that will work...
- jessaustin 5y agoDo you believe that "loopholes" exist?
- deleted 5y ago[deleted]
- imtringued 5y agoI hope it means that there will be dozens or hundreds of additional CEOs.
- GDC7 5y agoPublic companies can't do that, unless they want to have at least as many tickers. The 890 million treshold is calculated for the holding, not the subsidiaries
- hetspookjee 5y agoPretty sure you can create an index fund filled with all your sub 750M subsidiaries, redistribute the money that was gained by selling those and voila. You can even mix and match. Of course this is no cheap thing to materialise given that the law will probably be against such a thing but I’d give it a years time before the first ones raise their head with this approach.
- sbacic 5y agoI just hope the 750 million euro limit doesn't suddenly vanish "somewhere along the line" because "countries couldn't agree" and we end up with the whole Digital VAT Directive circus all over again - that is to say, that this minimal tax starts applying to small businesses it was never meant to apply to.