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by jeroenhd 1848 days ago
Many corporate tax evasion systems operate by setting up subsidiaries in countries where profit is taxed and licensing their own IP from a "company" in a country where you can cut nice tax deals. Because there's no good way to rate the value of IP, you can basically charge any amount to your other "companies" so that they don't make a dime of profit.

It figures that the "company" licensing all of this IP has very little in the way of operating costs. Maybe they need to pay the rent of the local mailbox that they've registered themselves to, or maybe they even need to rent an office in an office complex somewhere, but the entire operating exists purely to redirect the flow of money.

This approach is evil, nothing less. Companies benefit from government infrastructure all around the world and pay nothing back. The bookies that set up these schemes will tell you that they're perfectly ethical because they're totally legal, but their moral compass has stopped functioning years ago. It's not just Big Tech either, most companies operating worldwide use tactics like these.