Ironic, how a corrupt government tries to pursue corruption.
Spanish authorities raid Google offices over tax
171–180 of 368 posts
Re: Spanish authorities raid Google offices over tax
#172From El País, a little over an hour ago:
In the case of the Spanish subsidiary, the Tax Office is analyzing why Google pays so little tax in Spain despite making multimillion-selling. With this action, the Agency's technical investigators seek to determine if the international structure of the world's leading Internet search engine is not legitimate. Toward this aim they will try to prove that functionality the group attributed to its Spanish subsidiary are less than they actually performed.
The record is linked to an investigation into possible tax evasion. The company, known for its Internet search engine, has spent years in the crosshairs of Finance for its tax system, as part of their income managed through Ireland. Thus, it could be artificially reducing its business in Spain and lowering its tax bill.
Tax Office searches Google Spain and Google Ireland for evidence of tax fraud
http://economia.elpais.com/economia/2016/06/30/actualidad/14...
Re: Spanish authorities raid Google offices over tax
#173I don't think there is a justification for big corporations to do what they do and they have to be pursued. I've been working for a bank in a tax haven in Europe and I've seen that financial engineering powerful people use has been a known and accepted tool for the governments for a while, and now that Europe is living a financial crisis governments start asking. These companies play in an absolutely different league…
Why are you blaming the companies for acting rationally, rather than the governments for creating absurd tax environments? I agree it's unfair, but I can't fault anyone for trying to legally minimize their tax burden. Tax law should just be simple enough that anyone can do it themselves.
Companies lobby governments to create or maintain favorable tax environments, governments look to be friendly to business. Everybody is being rational, so nobody is responsible? Everything is great right?
Your business does not deserve my money, my support, or my respect if you are not proud to pay your fair share for the common resources that are the foundations of its success.
Re: Spanish authorities raid Google offices over tax
#174I don't think there is a justification for big corporations to do what they do and they have to be pursued. I've been working for a bank in a tax haven in Europe and I've seen that financial engineering powerful people use has been a known and accepted tool for the governments for a while, and now that Europe is living a financial crisis governments start asking. These companies play in an absolutely different league…
Why are you blaming the companies for acting rationally, rather than the governments for creating absurd tax environments? I agree it's unfair, but I can't fault anyone for trying to legally minimize their tax burden. Tax law should just be simple enough that anyone can do it themselves.
I have to agree with Wyager here. Governments create incredibly challenging tax rules and environments. Those rules are hard to understand and they cripple the growing businesses. The small business just can't compete with the big player in managing their tax affairs. This hurts even more when you know that after all the hard work that you do, your tax money isnt even being spent in the right places. After the UK decided to bomb syria, though i still paid my tax, that became more and more painful. I didnt like what the government was doing with my hard earned money. Syria is just one thing in the line of many. There are so many things the government spends money on and it all comes out of taxpayers pockets. The ordinary citizen -- in reality -- has very little say with what happens to that money. That's why i dont blame people that avoid it. I can understand their reasoning.
Re: Spanish authorities raid Google offices over tax
#175Earlier quoted context omitted.
> so it's only legal by default. The idea that bureaucrats can make enough laws that we know exactly what action ever taken in the future is "illegal or not" is pure Orwellian. Most things in life are legal by default. This is no different.
Actually I read somewhere that it differs by country. I think the UK is legal by default unless the law specifically makes it illegal. While in Germany its illegal by default unless it is specifically made legal. (I am no expert, it was probably a comment I read on here).
It's part of an old joke (crops up in Yes Minister, may go back further): in Germany, everything is prohibited except that which is allowed; in the UK, everything is allowed except that which is prohibited; in Russia, everything is prohibited including that which is allowed, while in Italy everything is allowed especially that which is prohibited.
Re: Spanish authorities raid Google offices over tax
#176Earlier quoted context omitted.
This is why abuse of rights is an important legal principle: https://en.wikipedia.org/wiki/Abuse_of_rights Rational != Ethical
The parent raises a good point though: Tax law is extremely complex when it doesn't need to be. The only justification for this complexity (that I could come up with) is exactly that it's complex to enable tax evasion/tax burden minimization.
Agreed. If we are going to tax corporations then why not a flat tax on the gross revenues. In the U.S a 3% tax rate on gross is the approximate revenue the IRS currently collects. Pass the expense to your customer if you are in a low margin business.
A business can't tell their landlord that they owe no rent because they are "unprofitable" ? Why then do we accept this excuse from the businesses who benefit the most from our public systems.
Re: Spanish authorities raid Google offices over tax
#177Earlier quoted context omitted.
This is why abuse of rights is an important legal principle: https://en.wikipedia.org/wiki/Abuse_of_rights Rational != Ethical
The parent raises a good point though: Tax law is extremely complex when it doesn't need to be. The only justification for this complexity (that I could come up with) is exactly that it's complex to enable tax evasion/tax burden minimization.
Average voters are too dumb and uneducated to appreciate that complexity or the effects it has. People who do would rather participate in that tax scam.
The reason politics is full of vapid stupidity is that powerful entities want it that way. If the population wasn't distracted by guns, abortion, and gay sex they might actually be paying attention to issues that matter.
Re: Spanish authorities raid Google offices over tax
#178Earlier quoted context omitted.
Maybe so. If you just want the effect, you could release smoke just for show, without actually destroying anything.
You mean if you want them to think you destroyed the evidence, and thus incurring the wrath of the law, without actually destroying the evidence that might incriminate you? Sounds like a lose-lose scenario, to me.
Well, that's me! :-)
Re: Spanish authorities raid Google offices over tax
#179I 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.)
Oh no, they apparently keep those documents in the calendar. And they've brought it down!
https://www.google.com/appsstatus#hl=en&v=issue&sid=2&iid=84...
Re: Spanish authorities raid Google offices over tax
#180Earlier quoted context omitted.
How was his question anti-investigation?
The question isn't, but being paperless and cloud-based seems like it would make it more difficult to investigate for the folks investigating.
Possibly, but that's not why they are paperless. I'm guessing the goal of going paperless is much less about being anti-investigative, and more about convenience, environment, etc. It just happens to have some aspects that are possibly anti-investigative.