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Governments around the world have been suffering the "Not Taxed Here" syndrome for a long time. Companies making money across borders can pay their corporate ta
by rgo 14y ago
Governments around the world have been suffering the "Not Taxed Here" syndrome for a long time. Companies making money across borders can pay their corporate taxes elsewhere, wherever is more convenient, sometimes in the US, sometimes in Ireland, etc. This is not specific to Google or Facebook. There are many evasive tricks, most of them legal, like having headquarters charge branches a high price for "services and goods" therefore drying up local profits. [1][2]
The online advertisement business is just another disruption on the "tax industry". Taxes on a global market are a doomed business. Bring these corporate practices effectively into the public eye and negotiate from there. Foster competitiveness. But don't push yet another distorting set of laws onto an already high pile of bureaucracy.
[1] http://news.cnet.com/8301-13579_3-57544873-37/apples-taxes-on-overseas-profits-last-year-less-than-2-percent/ http://news.cnet.com/8301-13579_3-57544873-37/apples-taxes-o...
[2] http://www.ifoapplestore.com/2012/05/23/spain-retail-financials-reveal-controversial-accounting/ http://www.ifoapplestore.com/2012/05/23/spain-retail-financi...
- mongol 14y agoIndeed. Especially common it seems to be to make a subsidiary in one country pay another company a license fee for using the brand. But making legal hurdles against moving profits this way is not something I am against, I find it more fair if profits are taxed where they are made rather than one country making all tax profits on the expense of others. But the legal construction should be simple, make sense, and be effective. Not so easy to achieve.