I wonder how much tax revenue the EU would have lost if Google and Facebook didn't exist.
Facebook most likely reduces the productivity of citizens.
EU lost up to €5.4B in tax revenues from Google, Facebook: report
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Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#22Is the EU tax based on revenue instead of profit? Or is basing it on revenue in this instance just supposed to make the "percentage paid" smaller to make FB and Google look worse?
Directly mentioned in the article: “Facebook’s taxes as a share of their revenues recorded outside the EU is between 28 percent and 34 percent, whereas in the EU this is a remarkably low ratio of 0.03 percent to 0.10 percent,” the report adds.
Profit numbers are very susceptible to accounting gymnastics. EBITDA and revenue, on the other hand, are more difficult to manipulate. If you make assumption that companies in the same domain have similar operations, then profit margin, and by extension taxes paid on reported profits, should be similar. Based on this assumption, one can say that it is worth looking into when companies in the same domain have significantly different reported profit margins or reported profit margins differ significantly based on location. Tax to revenue ratios in this case differing by two orders of magnitude raise some eyebrows.
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#23Earlier quoted context omitted.
I wonder how much revenue and profit would have lost Google and Facebook if they didn't exist in the EU
How do they "exist" in the EU? One way to see it is that people from the EU are simply buying services from a US company. It's as if they caught a plane, and paid at a cash register in California. But instead of making the trip, they just sent a check.
> One way to see it is that people from the EU are simply buying services from a US company
I would like how they do businesses, including Amazon and Apple if they leave the EU because the way you see it is totally wrong.
Starting with data protection directives and following with dealing with VAT, and EU customers
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#24Earlier quoted context omitted.
I wonder how much revenue and profit would have lost Google and Facebook if they didn't exist in the EU
How do they "exist" in the EU? One way to see it is that people from the EU are simply buying services from a US company. It's as if they caught a plane, and paid at a cash register in California. But instead of making the trip, they just sent a check.
> How do they "exist" in the EU?
They both have headquarters in Dublin.
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#25I wonder how much tax revenue the EU would have lost if Google and Facebook didn't exist.
No company just adds 100% of its value.
Facebook isn’t anything new – maybe it adds 10% more value than MySpace would have had if Facebook didn’t exist in the EU. Maybe it adds 20% more value than the VZ Networks would have added.
You can’t just look at the entire value these companies provide, because local providers existed before Facebook and Google replaced them. Yes, Google and Facebook are overally more efficient, but only by a small amount.
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#26Earlier quoted context omitted.
How do they "exist" in the EU? One way to see it is that people from the EU are simply buying services from a US company. It's as if they caught a plane, and paid at a cash register in California. But instead of making the trip, they just sent a check.
> How do they "exist" in the EU? They both have headquarters in Dublin.
And physical presence in almost every EU country
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#27So I want to implement Common Consolidated Corporate Tax Base CCCTB across Europe, which means I want to have the power to determine the rules for the whole EU. I then create a report projecting that we could increase our tax revenue if we pass the law to give me more power.
I have some thoughts. 1) The projected windfall from this CCCTB will not materialize... if we take history as a indicator. When ever does companies or people not react to increased taxes? 2) Losing the ability to attract international companies will hurt countries / cities that are lower on the marketability scale. Would the 'Celtic Tiger' miracle have happened if they did not have the sovereignty to attract international companies with lower taxes. That is doubtful at best. 3) Competition, including taxes, is great for Europeans. If we study history we see that competition is one of the components that resulted in the dominance of the west. (see Civilization: Is the West History?) 4) The biggest reason Brussels is doing this is not to have to ask each country for money anymore. These negotiations have become more tough for Brussels, since the countries are pushing back on exorbitant spending by Brussels.
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#28"This resulted in estimated revenue losses for EU states, other than Ireland"
What does this mean? Ireland is in the EU. It's like complaining France or Germany don't share their tax revenue proportionally with the rest of the EU states.
Ireland and other EU states have sovereignty over their own tax laws. If you change that you will basically change what the EU is.
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#29Earlier quoted context omitted.
How do they "exist" in the EU? One way to see it is that people from the EU are simply buying services from a US company. It's as if they caught a plane, and paid at a cash register in California. But instead of making the trip, they just sent a check.
> How do they "exist" in the EU? They both have headquarters in Dublin.
So if they didn't have a physical presence in the EU, then it would have been fine not to tax them?
Re: EU lost up to €5.4B in tax revenues from Google, Facebook: report
#30So I want to implement Common Consolidated Corporate Tax Base CCCTB across Europe, which means I want to have the power to determine the rules for the whole EU. I then create a report projecting that we could increase our tax revenue if we pass the law to give me more power. I have some thoughts. 1) The projected windfall from this CCCTB will not materialize... if we take history as a indicator. When ever does compan…
Why not for the whole world and get rid of tax havens for corps and for wealthy indivs as well? This would put pressure and incentives on govt's to be fairer about taxes in multiple ways.
We've got corps who won't repatriate money cuz profits overseas...[apple and indivs with overseas shell cos, etc.]