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by hmartiniano
2538 days ago
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What I was arguing is that raising taxes revenues instead of profits (when companies declare no profits as part of tax-avoidance schemes) will eventually make them declare and pay taxes on real profits. You have a point here, but what really is at stake here is tax-evasion, not reduction. The company declares no profits in France (and thus pays no tax) because its profit is fraudulently passed as costs to pay for IP or services for the mother company in another country. |
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If a US company develops IP in the US, is it not normal that they then get to charge a royalty for use of said IP globally?
If a French company develops IP in France, is it not normal that they then get to charge a royalty for use of said IP globally?
If you have a centralised office somewhere supplying back office services to all entities within Europe, does it not make sense to allow companies to tax deduct these expenses?
It seems like an easy thing to fix, but it's not. Particularly because multinationals _do_ actually operate in many countries and can pick where to base their operations.