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by AnthonyMouse
596 days ago
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> if they lie to the state when filing taxes In general this is not what they do. What they do is read the tax code carefully and structure their operations in such a way as to minimize taxes, e.g. because tax is paid on "profits" (revenues minus expenses) so they shift more expenses into jurisdictions with high tax rates etc., causing "profits" to go down in those jurisdictions and up somewhere else. Then they don't pay any taxes in the jurisdictions with higher tax rates and politicians go on TV and complain about the companies following the laws that the politicians enacted. Because if they actually fixed the laws, the taxes would be paid based on the extent to which the company does business in that jurisdiction, and then companies could only avoid taxes by not doing business there (costing the country jobs) or, for taxes associated with local sales, by raising prices there. Neither of which the politicians actually want to do, so instead they pass laws that allow companies to avoid taxes and then complain about it when the companies do it. |
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