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I wonder what they expect to find? Or whether it is just a display of force.
Paperwork that contradicts statements the company has made, which would be shredded long before an inspector's arrival should a more formal appointment be arranged.
> Or whether it is just a display of force.
This is usually a factor in such raids too, but it only works if there is a chance something might be found so they wouldn't do it purely as a show of force.
Google uses Bermuda (a British overseas territory) to avoid tax liability in the EU “Google has paid €8.8 billion in fees to Bermuda,” S&D group MEP Peter Simon complained. [1] The irony being that the current president of the European Commission, Jean-Claude Juncker, was Prime Minister of Luxembourg when his administration was organising the low tax environment. [2] [3] And now the EU claims that "the Anti Tax Avoid…
If Google paid €8.8b in fees to avoid paying taxes, just how much taxes are we talking about? Also seconding vmateixeira: Thanks for your research!
Google uses Bermuda (a British overseas territory) to avoid tax liability in the EU “Google has paid €8.8 billion in fees to Bermuda,” S&D group MEP Peter Simon complained. [1] The irony being that the current president of the European Commission, Jean-Claude Juncker, was Prime Minister of Luxembourg when his administration was organising the low tax environment. [2] [3] And now the EU claims that "the Anti Tax Avoid…
How can this still be possible? Shouldn't all tax legislation be such that if you break the spirit of it by having internal transfers (royalties, fees, interest) to a low-tax area, then you are still taxed based on the business that you had in the country in question, and not based on the net sum (i.e. zero). The current state of tax law is that a billion dollar company pays almost no taxes but a million dollar compa…
In an "odd" application of market-competition, that is precisely what happened. Countries where Google generally did business wanted to tax Google at some X. Then along came Ireland, or Google found Ireland, and saw that they could do some legal paperwork and pay Ireland's tax rate of X-Y instead of X in the "source" countries.
The point I'm making is that Google did pack up and leave, and it will happen again unless really drastic actions are taken against them. I don't think anyone wants to do that, at this point.
You either bully all countries from allowing loop holes such as this, even though they don't want to. Or you disallow Google from operating in your country if they don't pay taxes on the profit from "sales" you deem occurred in your country. Small countries that want/need that tax revenue from Google, even if it is X-Y, won't like it if you compel them into complying and causing Google to "pack up and leave". It also puts the "bullying" nature of whatever international body is tasked with enforcing this into light.
Earlier quoted context omitted.
How can this still be possible? Shouldn't all tax legislation be such that if you break the spirit of it by having internal transfers (royalties, fees, interest) to a low-tax area, then you are still taxed based on the business that you had in the country in question, and not based on the net sum (i.e. zero). The current state of tax law is that a billion dollar company pays almost no taxes but a million dollar compa…
" Are countries, simply put, afraid to put an end to tax schemes like this, because it would just mean that Ikea or Google would pack up and leave? " In an "odd" application of market-competition, that is precisely what happened. Countries where Google generally did business wanted to tax Google at some X. Then along came Ireland, or Google found Ireland, and saw that they could do some legal paperwork and pay Irelan…
Getting some stronger wording in the tax legislation on EU level should be doable, but of course the Netherlands would squirm a bit.
I would expect google to keep all financial documents inside Google Drive. In doing so, I wonder what is left in the office for the Spanish authorities to find in a raid? (Google is ruthlessly paperless internally.)
Not if they have to keep information on paper to comply with the law.
Google uses Bermuda (a British overseas territory) to avoid tax liability in the EU “Google has paid €8.8 billion in fees to Bermuda,” S&D group MEP Peter Simon complained. [1] The irony being that the current president of the European Commission, Jean-Claude Juncker, was Prime Minister of Luxembourg when his administration was organising the low tax environment. [2] [3] And now the EU claims that "the Anti Tax Avoid…
How can this still be possible? Shouldn't all tax legislation be such that if you break the spirit of it by having internal transfers (royalties, fees, interest) to a low-tax area, then you are still taxed based on the business that you had in the country in question, and not based on the net sum (i.e. zero). The current state of tax law is that a billion dollar company pays almost no taxes but a million dollar compa…
The then prime minister and ex-finance minister of Luxembourg Jean-Claude Juncker is now EU Commision president. So either he is incompetent and did not know about this, or he was involved. He claims he is only incompetent.
With the EU leadership being corrupt or incometent, it is no wonder the big companies are dancing circles around the national tax authorities.
Google uses Bermuda (a British overseas territory) to avoid tax liability in the EU “Google has paid €8.8 billion in fees to Bermuda,” S&D group MEP Peter Simon complained. [1] The irony being that the current president of the European Commission, Jean-Claude Juncker, was Prime Minister of Luxembourg when his administration was organising the low tax environment. [2] [3] And now the EU claims that "the Anti Tax Avoid…
Google uses Bermuda (a British overseas territory) to avoid tax liability in the EU “Google has paid €8.8 billion in fees to Bermuda,” S&D group MEP Peter Simon complained. [1] The irony being that the current president of the European Commission, Jean-Claude Juncker, was Prime Minister of Luxembourg when his administration was organising the low tax environment. [2] [3] And now the EU claims that "the Anti Tax Avoid…
If Google paid €8.8b in fees to avoid paying taxes, just how much taxes are we talking about? Also seconding vmateixeira: Thanks for your research!
Then Google US and Apple US just have to wait for a tax amnesty in the US in order to bring back oversea un-taxed profits.