171–180 of 931 posts
Earlier quoted context omitted.
Because in practice if you make 1 million in a country, you’ll claim 1 million in expense in another country (with little to no taxes) for things like IP, trademark, etc.
Though whole accountancy process has many parallels to a pyramid selling, with the IP being the top of the pyramid located in some tax favourable country of the moment.
How will taxing authorities determine which companies meet the 10% profit margin threshold? Which jurisdiction is this threshold calculated in for multinationals?
I do wonder if we wouldn't be better off eliminating corporation tax entirely. The revenue of a corporation can, roughly, be: 1. Spent on goods or services from another company (including freelancers, contractors, etc.) 2. Spent on rent 3. Spent on capital purchases 4. Spent on wages 5. Spent on debt repayment or other forms of financing 6. Paid out in dividends 7. Spent on share buybacks 8. Invested in something els…
I do wonder if we wouldn't be better off eliminating corporation tax entirely. The revenue of a corporation can, roughly, be: 1. Spent on goods or services from another company (including freelancers, contractors, etc.) 2. Spent on rent 3. Spent on capital purchases 4. Spent on wages 5. Spent on debt repayment or other forms of financing 6. Paid out in dividends 7. Spent on share buybacks 8. Invested in something els…
I think some people would find issue with the distribution of wages paid in #4.
Earlier quoted context omitted.
It's complicated. "Money they made in their country" is hard to define. Large companies abuse intangible assets to shift profits around, but it's hard to say at what point abuse starts. For example, Google USA sells advertising to its clients. But, the assets it is selling are actually owned by Google Ireland. Google Ireland charges Google USA a license fee of 100% of the revenue they made. Suddenly, Google USA has n…
> Probably the best solution is a minimum tax worldwide. Wouldn't that make companies pay taxes in countries they are based in (as opposed to where they make money)? Anyway this could be the push that the EU needed to start their own Silicon Valley.
I suppose a company could still move profit wherever they choose, but mostly likely inertia would keep it in place.
I already said that the pandemic would force the entire world to lean to the left in terms of politics. It's inevitable. I'm very happy about that decision, but I'm not really confident it will lead to something. I'm also a bit cynic that it took a pandemic to make countries realize they need money. I'm also waiting to see if government are really planning to fight against tax havens. The problem is that it's impossi…
Imagine being a panama citizen, your government is hellbent on protecting foreign billionaires from paying taxes in their home country. Now the Panama Canal is seeing only 50% of the traffic with resulting job-loss, the national team is no longer allowed to play in Copa America, and your countrymen have to play under a different flag if they go to the Olympics. And all because of a government policy you don’t agree with.
You will probably factor that in when you decide who you will vote for in the next election.
Earlier quoted context omitted.
I just wanted to show how silly is sounds that some ally countries think they can enforce actions on other countries
This happens all the time, see e.g.: https://en.wikipedia.org/wiki/Brussels_effect Of course you're free to ignore it, if you don't care about hundreds of million potential customers.
So it isn't that simple when it is something like this. So far history shows that tax havens work and the loop-holes are very challenging to close.
Earlier quoted context omitted.
It's complicated. "Money they made in their country" is hard to define. Large companies abuse intangible assets to shift profits around, but it's hard to say at what point abuse starts. For example, Google USA sells advertising to its clients. But, the assets it is selling are actually owned by Google Ireland. Google Ireland charges Google USA a license fee of 100% of the revenue they made. Suddenly, Google USA has n…
> Probably the best solution is a minimum tax worldwide. Wouldn't that make companies pay taxes in countries they are based in (as opposed to where they make money)? Anyway this could be the push that the EU needed to start their own Silicon Valley.