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40% of multinational profits are shifted to tax havens each year

missingprofits.world

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Re: 40% of multinational profits are shifted to tax havens each year

#141

Post by occamrazor »

aembleton wrote: post #51
Nasrudith wrote: post #36

Earlier quoted context omitted.

The problem with that is the expenses are already arbitrary with international businesses. It is Hollywood accounting of making movies "never turn a profit" writ large and arguably more honest. If say Amazon UK "rents" their branding, storefront, and similiar from Amazon US the value. Essentially unfixed value goods + deductions = massive loophole. Unfixed fuzzy values are also very valuable to money launderers. It i…

That's why I think corporation tax should be applied to UK Sales - UK Costs. - Buy in the branding from the US? That can't be deducted. - Import from China? Can't be deducted. - Employ more people. Deductible - Buy more from UK suppliers. Deductible. Now go on and export more with that. Those export sales won't affect your tax.

VAT works approximately like that (except for the fact that salaries are not deductible)

Re: 40% of multinational profits are shifted to tax havens each year

#142

Post by thecleaner »

buboard wrote: post #78
cs702 wrote: post #9

Wow. Power , in all its forms -- economic, cultural, social, political -- is highly concentrated among impersonal giant corporations today. For this kind of legal tax avoidance would be impossible without mutual understanding, collaboration, and coordination across national boundaries among many disparate groups of people, all serving their corporate masters in one way or another (as their employers, as their custome…

The corp. tax loss is 10% Its becoming clearer that the world is shifting towards coordinated world-wide tax rates, similar to how central banks are coordinated. Modern trade is complex and almost always multinational. Clear and easy tax rates will actually allow anyone to enjoy fair taxation, instead of the current unequal situation in which megacorps can use complex schemes to drastically reduce their rates, while…

It is weird that in Germany, you hit the highest bracket so quickly. It would be great if individuals were taxed like corps - pay after your expenses like rent etc. In this place there is nothing to save taxes on. Even if rent goes up, tax rate stays the same. Not counting the ridiculous system of Church tax which is just infuriating.

Re: 40% of multinational profits are shifted to tax havens each year

#143

Post by thecleaner »

buboard wrote: post #103
Iv wrote: post #94

Earlier quoted context omitted.

There is a theory saying that Brexit campaign was financed by the people afraid of the EU banking transparency laws, that would threaten many UK-based tax havens.

If you look at the data, there’s plenty of EU tax havens to use

Any one that is particularly employee friendly ?

Re: 40% of multinational profits are shifted to tax havens each year

#144

Post by gamblor956 »

Mirioron wrote: post #140
gamblor956 wrote: post #130

Earlier quoted context omitted.

I did not say tax compliance was easy. But figuring out the rates is a simple table lookup. Also, using a US business to collect in-game payments no longer lets you avoid VAT compliance if you sell to EU customers. Which is why you can now use an EU VAT compliance "one-stop shop" which does it all for you .

Does that one stop shop have reasonable VAT minimums yet?

The one-stop shop will work with you whatever your VAT liability is.

If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be...

In that respect, tax is no different than each platform or website having its own API and TOS. We don't make every Facebook and Google use the same API and TOS, so why should we force countries to use the same tax thresholds?

Re: 40% of multinational profits are shifted to tax havens each year

#145

Post by xyzzyz »

tapland wrote: post #99
rayiner wrote: post #88

> This shifting reduces corporate income tax revenue by nearly $200 billion, or 10% of global corporate tax receipts. To put that into perspective, the OECD has $50 trillion in GDP, and raises over $17 trillion in tax revenue. So we are talking about 1.2% of total tax revenue. Even taxing all multinational corporate profits at 50% with no tax havens would only add up to less than 5% of all tax revenue. I wonder what…

Because a yearly tax rate isn't a flat fee and yearly rates compound. For example, from the widely shared article from business insider the other week. If there was a 3% tax on money past $1B Jeff Bezos wouldn't have beat $86B in fortune, but he's at $160B today. That's a 100% increase caused by what you call a 'rounding error'. Over not-even-that-many-years.

Corporate income taxes are not annual taxes on wealth. They do not compound.

Re: 40% of multinational profits are shifted to tax havens each year

#146

Post by Mirioron »

gamblor956 wrote: post #144
Mirioron wrote: post #140

Earlier quoted context omitted.

Does that one stop shop have reasonable VAT minimums yet?

The one-stop shop will work with you whatever your VAT liability is. If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be... In that respect, tax is no different than each platform or website having its own API and TOS. We don't make every Facebook and Google use the same API and TOS, so why should we force countries to use the same tax thresholds?

>If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be...

When did they make this change? Because initially when the system started the mini-one-stop-shop did not allow you to use VAT thresholds. That was one of the big points of contention about it.

Re: 40% of multinational profits are shifted to tax havens each year

#147

Post by gamblor956 »

Mirioron wrote: post #146
gamblor956 wrote: post #144

Earlier quoted context omitted.

The one-stop shop will work with you whatever your VAT liability is. If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be... In that respect, tax is no different than each platform or website having its own API and TOS. We don't make every Facebook and Google use the same API and TOS, so why should we force countries to use the same tax thresholds?

> If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be... When did they make this change? Because initially when the system started the mini-one-stop-shop did not allow you to use VAT thresholds. That was one of the big points of contention about it.

We're talking about 2 very different things.

It sounds like you're talking about a one-stop shop where you get to decide when you want to use it based on your own thresholds. You can certainly do that, it depends on the specific one-stop shop as to how much is manual vs done for you. Some are more technologically advanced than others.

I'm talking about the VAT thresholds at which you're required to collect VAT (and thus would consider using a VAT one-stop-shop). At the time the one-stop shops were introduced, there were no minimum thresholds.

Generally, beginning in 2019, EU members are supposed to have a EU 1000 threshold for requiring VAT compliance. But like all EU rules, this rule requires local implementation and it hasn't yet been implemented by all member states. So in some countries, you need to do at least EURO 1000 of business before needing to deal with VAT compliance...but in others, its still EURO 0.

Re: 40% of multinational profits are shifted to tax havens each year

#148

Post by Mirioron »

gamblor956 wrote: post #147
Mirioron wrote: post #146

Earlier quoted context omitted.

> If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be... When did they make this change? Because initially when the system started the mini-one-stop-shop did not allow you to use VAT thresholds. That was one of the big points of contention about it.

We're talking about 2 very different things. It sounds like you're talking about a one-stop shop where you get to decide when you want to use it based on your own thresholds. You can certainly do that, it depends on the specific one-stop shop as to how much is manual vs done for you. Some are more technologically advanced than others. I'm talking about the VAT thresholds at which you're required to collect VAT (and t…

1000 euros sounds so incredibly low that it might as well not exist. I'm actually amazed how poorly that's thought out.

Re: 40% of multinational profits are shifted to tax havens each year

#149

Post by Iv »

iudqnolq wrote: post #137
Iv wrote: post #94

Earlier quoted context omitted.

There is a theory saying that Brexit campaign was financed by the people afraid of the EU banking transparency laws, that would threaten many UK-based tax havens.

Then why did the financial sector campaign heavily against Brexit, and most of the employees in that sector vote against it? Brexit would make it much harder for Europeans to use British financial products. > Britain’s financial services industry, the country’s biggest tax earner, risks being cut adrift from its main export market - the European Union - after Brexit. https://www.reuters.com/article/us-britain-eu-fina…

Because managing tax havens is a very small part of the sector in number of employees.

Re: 40% of multinational profits are shifted to tax havens each year

#150

Post by gamblor956 »

Mirioron wrote: post #148
gamblor956 wrote: post #147

Earlier quoted context omitted.

We're talking about 2 very different things. It sounds like you're talking about a one-stop shop where you get to decide when you want to use it based on your own thresholds. You can certainly do that, it depends on the specific one-stop shop as to how much is manual vs done for you. Some are more technologically advanced than others. I'm talking about the VAT thresholds at which you're required to collect VAT (and t…

1000 euros sounds so incredibly low that it might as well not exist. I'm actually amazed how poorly that's thought out.

There is a huge difference between 1000 euros and 0 if you're selling into a country from elsewhere.

The threshold is high enough to not impact incidental foreign sellers but low enough that it's not worth the costs of creating new sales entities to evade VAT compliance.

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