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by jsnell 4960 days ago
Yes, it's immoral and in an ideal world would not be legal. But the decision to sell the Nexus 4 from Ireland clearly has nothing to do with dodging taxes, so it's ridiculous to use the Nexus 4 as an example of this kind of operation. The fact of the matter is that for a Nexus 4 sold to the UK there's about 40GBP of VAT being paid to the UK, and about 0EUR of actual profit for Ireland to tax (or for the Bahamas, or whatever the domicile of the appropriate sleazy holding company is).
2 comments

No, they're selling it there because that's where they're set up. Just because you have a product you don't expect to directly make money on you don't go and set up a new operation to sell it - the fact you're not making money means that you're going to use whatever you've already got in place rather than incur new costs.

But the fact that this product isn't profitable doesn't excuse it. We're always told that Android drives the Google ecosystem which drives profits.

This phone in of itself may not be profitable but it drives other Google services which are and on which tax is avoided.

The more business they do wholly in the UK, the harder it becomes for them to make a case for not paying their taxes.