[bluelu]

" I suspect, therefore, that Luxembourg does not regulate or apply its laws to commerce that occurs outside its borders."

is just plain wrong.

[all]

It may be. But it is true that most tax havens, including the other three I mentioned, do not tax anything that does not happen within their borders. That is why there is the infamous address in the Caymans to which some 8000 businesses are registered, according to Obama.

[bluelu]

What you are claiming holds for Delaware (which is in the USA!). Just google for delaware tax haven.

[mturmon]

What you said is not true. According to the first link in the google search you recommend...

http://www.lectlaw.com/filesh/bbg33.htm

"Delaware LLCs pay a $100 annual tax and are otherwise tax free if no business activity is carried on in the US, most of its members are not US citizens or residents and it does not invest in US companies."

That's a lot of if's that there's no way a company like Amazon could satisfy. Also:

"Although there is no state income tax, as with all states no matter their particular tax laws, all US companies (or any entity for that matter) are subject to applicable federal tax laws & reporting requirements."

In other words, of course US taxes are still payable for companies incorporated in Delaware.