Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Spain planning on going ahead with ‘Google tax’ despite US tariff threats

elpais.com

Post reply on HN
Print view View original

61–70 of 275 posts

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#61

Post by simiones »

pc86 wrote: post #25
_Understated_ wrote: post #21

Earlier quoted context omitted.

Not trolling, but is there anything that says they're breaking the current laws in Spain? (I'm from the UK, so no dog in this fight althought I can see our gov implementing it at some point I reckon) Sure, they're taking advantage of tax loopholes I'd bet but in themselves, they're not necessarily against the law. They're probably paying all the tax in Spain they're currently, legally obliged to pay at the moment. Ju…

There's no such thing as a tax loophole. It's the law, and is written specifically the way it is for a reason. "Loophole" by definition implies that it's a mistake, and with the amount of money at stake that's incredibly unlikely.

There are many real tax loopholes even by your definition.

For example, there is an interaction between US and Dutch laws that essentially means that US companies that transfer copyright to Dutch subsidiaries don't owe any tax to anyone on the profits from that copyright (it's something like this: Dutch laws say that the tax is payed in the country of origin, US laws say that the tax is payed in the country where the copyright owner resides).

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#62

Post by mcrae »

frr149 wrote: post #33
HorstG wrote: post #5

Earlier quoted context omitted.

The EU will never close tax loopholes since there will always be a veto from the likes of Ireland, Netherlands, Luxembourgh or UK.

No, not the UK

Uh really? Check any list of the world's tax havens, and you will see the British Virgin Islands, the Cayman Islands, the Isle of Man, and Bermuda. The City of London has been a conduit through which wealth has been pilfered to these territories for a long time. They may shout from the rooftops about others' improprieties, but I seriously doubt their commitment to meaningfully overhaul their own house.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#63

Post by tyzerdak »

I think taxes is already so high that half of person earnings goes to retards in government.

Why do we pay taxes? I know many people that have close to 0 benefits from government.

I would propose all governments to make taxes 5% or 10% and remove themselves from governing.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#64

Post by jacquesm »

nwellnhof wrote: post #54

Historically, it has always been understood that companies only pay income tax in their country of residence. BMW isn't taxed on its US income by the US, just like Google isn't taxed on its German income by Germany. I think it's more accurate to say that the so-called "Google tax" is actually a tariff on Internet services. Traditionally, tariffs were only levied on imported goods but the concept works for services as…

You can't really compare BMW and Google. Google provides a service, BMW sells goods.

Services are usually taxed at the point of delivery, goods are usually taxed at the point of import or on the manufacturers net profits based on where they are based. Either way, taxes are paid, directly or indirectly.

With Google the situation is such that all their income is abroad, and the service is free so not taxable. This is arguably a situation that the present day tax regime did not foresee so an adjustment is logical. A similar thing has happened inside the EU with respect to transnational sales tax. See MOSS.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#65

Post by vixen99 »

tonyedgecombe wrote: post #9
nabla9 wrote: post #2

These are patchwork solutions. It would make more sense if EU countries would make laws that extend normal VAT to all internet business in EU and close all Irish loopholes. Google and others use Irish tax arrangement schemes like "The Double Irish" (base erosion and profit shifting), the Single Malt, and CAIA to avoid paying taxes. 12 EU states reject move to expose companies' tax avoidance https://www.theguardian.co…

Most of Google's paying customers are businesses, for them an increase in VAT is neutral as they will be reclaiming it.

In other words, the end customer down the line pays.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#66

Post by vixen99 »

tonyedgecombe wrote: post #10
qxnqd wrote: post #8

Earlier quoted context omitted.

[flagged]

Yes, I know. They are socialists so they don't care if blue collar workers suffer just so they can "send a message". The Conservatives in the UK are planning a similar tax, they are certainly not a socialist party.

A fair number of Conservatives would take issue with that statement! And they have a damn good case.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#67

Post by jacquesm »

jbduler wrote: post #22

For me it makes total sense to tax Google, Facebook and all others. Why not? What do you to lose? Parking your IP in some remote country, be it Ireland or Turks and Caicos, is fine until you realize that the IP protection is not as bullet proof as you thought. And please don't come to California to sue to protect your IP. I still can't believe that none of those companies are paying Federal nor state taxes. For now.…

This has absolutely nothing to do with IP but everything to do with the delivery of services which are free, supplemented by advertising income accounted for abroad where it can not be taxed by the country where the service was delivered.

Looked at in a different way: if Google was a paid for service you could levy sales tax on that service.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#68

Post by Roark66 »

This is just a government looking for another tax to levy on its people. Google and Amazon will not pay it. The consumers of services offered by those companies will pay it. If there is 3% tax on every google ad sold in Spain. All will Google do is add 3% to its prices for Spanish users.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#69

Post by [deleted] »

mcrae wrote: post #62
frr149 wrote: post #33

Earlier quoted context omitted.

No, not the UK

Uh really? Check any list of the world's tax havens, and you will see the British Virgin Islands, the Cayman Islands, the Isle of Man, and Bermuda. The City of London has been a conduit through which wealth has been pilfered to these territories for a long time. They may shout from the rooftops about others' improprieties, but I seriously doubt their commitment to meaningfully overhaul their own house.

[deleted]

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#70

Post by matthewowen »

mcrae wrote: post #62
frr149 wrote: post #33

Earlier quoted context omitted.

No, not the UK

Uh really? Check any list of the world's tax havens, and you will see the British Virgin Islands, the Cayman Islands, the Isle of Man, and Bermuda. The City of London has been a conduit through which wealth has been pilfered to these territories for a long time. They may shout from the rooftops about others' improprieties, but I seriously doubt their commitment to meaningfully overhaul their own house.

I think it was a comment about the UK no longer being a member of the EU soon (we shall see).
Post reply on HN