[charlesdm]

What you call fraudulent is not actually fraudulent. It makes a lot of sense to allow this.

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.