Re: Profits are whatever you want them to be
Ok, I'll accept that a tax system along those lines could be fair - it would also have to say that if the UK company is seeing higher margins here, it also gets to pay tax as if it's UK margins reflected the global ones, and will not face any double taxation from anywhere else.
What if the costs are such that it's cheaper to pay an L'burg lawyer to do the UK company's UK legal work in Luxembourg? Costs will go down if the work is done there, so profits increase, taxes go up? I'm sure no-one will complain about any work that could be done here going overseas because it's good for the tax system ;-)