Citizen Sade wrote:And there are armies of state employees tasked with making sure that companies comply with the law. It seems that Amazon does so and pays little corporation tax because they make little profit. What then is your problem with their contribution?
Apologies, missed this. There are no 'armies' - barely enough to meet Blackfly's generous Force on Force rules. Tax teams facing large corporations will be in single figures and almost always outnumbered by any large corporations lawyer, tax advisors and accountants.
The Digital Economy Group has been lobbying the OECD to resist a redrawing of the tax rules and claims "Enterprises that employ digital communications models do not organise their business operations differently as a legal or tax matter." Really? If a trade union had suggested that a company sell in the UK but locate a 'sales' force in say Ireland or Luxembourg and route their sales through those offices and pay those offices a 'fee' virtually equivalent to those sales because wages were higher in those countries, they'd have been laughed out of the room, partly on grounds that it was a poor way to organise business. But if those countries have more advantageous tax laws, then funnily enough it is that poor business model they adopt and then claim it has nothing to do with tax.
These people are liars. They are in effect exploiting tax laws that have usually been put in place to reduce unfairness in very specific business instances and were not intended to allow other companies to bend their business model into what looks like a remarkably artifical arrangement to reduce their tax bill.
Somewhat ironically, given the higher costs of setting up these arrangements, the higher costs of Governments identifying these arrangements and putting new laws in place to offset them and the then repeated higher costs of changing the arrangements to avoid the new laws does have a continuous impact on the costs and effectiveness of the companies concerned. The only people winning this game are the Magic Circle accountancy companies who sell these arrangements.
My problem with Amazon, Starbucks, Googles etc contribution? It is not a fair contribution towards the country they operate in and who you and I have helped pay for the advantages in that country they wish to enjoy.