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Would you mind elaborating your thoughts on the last bit? I don't pretend to be an expert on international corporate taxation, but in the case of Ireland it did
by pavon 5y ago
Would you mind elaborating your thoughts on the last bit? I don't pretend to be an expert on international corporate taxation, but in the case of Ireland it didn't sound like US companies are avoiding taxes in the US. All the complaints are about revenues earned outside of the US, which should be taxed outside of the US. So I can definitely see why the EU would be upset with Ireland's policies, and support participating in treaties to make the situation more fair, but it seems inappropriate for the US to unilaterally "fix" a disagreement that is largely between EU member nations.
- yojo 5y agoMy understanding is that schemes are often employed to shift profits that occurred in high tax regimes to lower tax ones. E.g. company registers their IP to subsidiary in <low_tax_nation>. That subsidiary charges crazy royalties for the rest of the company to use the IP in <high_tax_nation>. The effective earnings in the high tax regime is low or zero because of the “cost” of licensing the IP. Meanwhile the subsidiary in low tax land makes bonkers profits on some extremely lucrative licensing. You can try to shut down these shenanigans playing legal whack a mole, but the law moves slower than the corporations. Or you can just set a global floor on taxes and not have to worry about keeping up with the latest corporate nonsense.