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> if you spend more than you make that year Yes, sure. But if you start another company in eg. cayman islands, then transfer your patents to that company, the
by ajsnigrutin 5y ago
> if you spend more than you make that year
Yes, sure.
But if you start another company in eg. cayman islands, then transfer your patents to that company, then that company charges you fees for those patents, and you earn zero on paper in your home country, and a lot in a country with very low taxes, you avoided the taxes in your main country. This is something large companies can afford to avoid paying the same tax rates as smaller ones do, while using the same (or even more) of the infrastructure that is paid by those taxes.
- vmception 5y agoyes, that also happens. this is one area that the US makes extremely difficult for its tax persons, and even large US companies can only do these economically unsubstantive transactions on their offshore earnings (unless it relies on lying). So there is a lot that other countries can try to legislate where the Double Irish With a Dutch Sandwich and other permutations have limited efficacy. from your country's perspective, I don't know.