[exDM69]

> If he thinks that Amazon and Starbucks are not paying enough tax to Austria, why doesn't he change Austrian law to charge them more tax?

Because Austria is a member of the EU and businesses in the EU but outside of Austria can operate there while paying taxes from their profits to their "home" country (VAT must be paid in Austria).

Now this is all good if the system wasn't so easy to exploit. Typical arrangements (like "double irish" or "dutch sandwich") have four, five or more subsidiaries in different legislations, each with their own locally negotiated tax breaks, doing complicated loan arrangements and IP licensing schemes that result in effectively zero tax (or a flat fee) and all the profits esacpe to Bermuda and Caymans.

There seems to be an Europe-wide crackdown on practices like this, and the Apple decision from earlier this week is just the beginning.

I'm really glad that this exploitative practice is (hopefully) coming to an end and the multinationals start paying their fair share.

[skafjvhs]

So the EU will not allow Austria to pass, for example, a tax on internet advertising in Austria (in the article the Chancellor complains that Facebook and Google don't pay advertising duty in Austria)?