SUBSIM Radio Room Forums - View Single Post - How Google reduces its tax bill by US$3.1Billion

Bilge_Rat · 10-22-10, 08:09 AM

Not surprising, every multinational from every country switches part of its profits to low tax or no tax jurisdictions.

Canada and the USA, to name the two jurisdictions I am most familiar with, have increasingly complex provisions in their tax codes to limit or prevent this type of planning, but there is only so much you can do.

With the increasing mobility and internationalisation of capital and the financial markets, it is impossible to prevent this kind of profit shift as long as tax havens continue to exist around the world.

It also has the unfortunate effect of putting pressure on all governments to lower tax rates on corporate income to stay competitive and to increasingly shift the tax burden to working-class and middle-class taxpayers who are not mobile.

10-22-10, 08:09 AM	#2
Bilge_Rat Silent Hunter Join Date: Apr 2002 Location: standing watch... Posts: 3,856 Downloads: 344 Uploads: 0	Not surprising, every multinational from every country switches part of its profits to low tax or no tax jurisdictions. Canada and the USA, to name the two jurisdictions I am most familiar with, have increasingly complex provisions in their tax codes to limit or prevent this type of planning, but there is only so much you can do. With the increasing mobility and internationalisation of capital and the financial markets, it is impossible to prevent this kind of profit shift as long as tax havens continue to exist around the world. It also has the unfortunate effect of putting pressure on all governments to lower tax rates on corporate income to stay competitive and to increasingly shift the tax burden to working-class and middle-class taxpayers who are not mobile. __________________