[turc1656]

Several thoughts on this. First, this is legal tax avoidance, not evasion which is actually illegal. Yes, it sucks, but it's completely legal, which you mention, but the terminology is important.

Second, I've thought of something similar for a different tax issue but didn't pursue it because I would probably run into a million legal and political problems. I had considered trying to legally deprive the state where I live of taxes on the sale of vehicles. I came up with a plan to use an intermediary and a set of contracts that are similar to stock options to allow pass through premium for the contract to flow though the intermediary for what would amount to basically 99.99% of the total cost and then exercise the contract for $1. So $1 would be the purchase price, the intermediary gets a small fee, and then remits the rest of the flow through premium to the entity selling the vehicle. In this manner, the total cost remains the same, and the profit of the dealership remains unchanged (less the small intermediary fee) and therefore their corporate tax would be unchanged. But since the purchase price is $1 no sales tax would need to be paid. I didn't pursue it because 1) I'm not a lawyer and 2) this would put a giant target on my back for the corrupt trash that runs my state to aim for.

Lastly, I think your thought is good but wouldn't pan out because in the end individuals can't not receive income wherever they live. So if you receive that income in your home country, you are paying income tax on it. These companies are able to have special laws that apply because they simultaneously exist in multiple locations. And they have an entirely different set of tax laws than those that apply to individuals. So this doesn't seem possible. The way I think this should be done is to apply a flat rate on top line revenue of, say, 2%. This can't be avoided because the tax is incurred simply by doing business in the country. That's basically the equivalent of making sure they are paying some minimal amount to access the market. Then the rest of the income tax laws can still apply and corporations can offset their income tax with whatever has been paid via this top line revenue tax.