Uber used 50 Dutch shell companies to dodge taxes

The Dutch government has, for a long time, actively presented itself (euphemistically) as a great place for foreign business. They of course would not openly advertise that as a tax avoidance opportunity, but you do the match.

While I'm not sure if this still happens today, the Dutch IRS used to have "special arrangements" with many big companies, for which the details were notoriously never made public. I believe this mostly applied to companies with a physical presence within the country (therefore also impacting the local society and economy and used as rhetorical justification for these deals). Still, since these deals where made behind closed doors, who knows what they may have arranged with foreign multinationals.

The problem with having any confidential deals, is that it becomes impossible to know what goes on as a whole (until a whistle-blower may steps forward). It doesn't mean there is any conspiracy going on, just that it becomes impossible (or at least really hard) to rule it out. History does have something to teach about what usually happens when opportunities for abuse are readily available, without much public scrutiny.

To drive this point a little further: Dutch citizens were relatively recently confronted with how their IRS turned out to not be quite the impeccable (or even legally operating) agency it is supposed to be. With that in mind, only God (and the IRS itself) knows what the agency exactly does with multinational corporation. I'd say they certainly lost the benefit of a doubt by now.

Uber has its corporate head quarters for the EU in Amsterdam. For a company the size of Uber to have 50 different entities is not particularly special, you will find several other multinationals there with the same number. It makes sense to have one for each jurisdiction they operate in, for example. The term "shell companies" seems to imply something nefarious, and that may very well be the case, but in itself having 50 entities in The Netherlands is not really a sign of that.

It's also important to point out that they do not choose The Netherlands for low corporate tax rates, they are not the lowest in the EU by far, but because of "tax rulings". Those are agreements they can make with the tax authorities that ascertain them how much tax they will pay this year as long as revenue, costs, etc, stay within a certain bandwidth. In the US it can take over a year for them to get any certainty on what their tax bill would be for the previous year, and shareholders hate that uncertainty.

No one thinks it's a good idea to compete in a "race to the bottom" of attractive tax laws, but as far as I'm concerned competing on better service is fair game. Many politicians screaming at The Netherlands tend to conveniently forget the part where their own country just delivers very poor service tax-wise.

Not that I disapprove of that, I just wish I could pull the same trick with HMRC - I'm just not rich enough or in friendly terms with governments overseas to do that.

Is this equality?

The main reason for that is because there is no One World Government yet, and no such thing as international law.