Re: Tax the Turnover
"Don't tax the profits - the accountants are too sharp!"
Actually the I.T. department helps out a lot, in that regard. It was one of my tasks, back in the early 90's, working for a large non-U.S. company [as a contractor]. Their U.S. division (where I worked) _was_ a U.S. corporation, and they had this rebate thing and some rather interesting 'middleman' pricing. Part of what I did was to determine what the rebate amount should ideally be, so that the U.S. corporation makes "a little money" but not too much, to keep the taxation down. It's not illegal to do this, but it would make a lot of people unhappy to have it confirmed. I said something like "oh you want to..." to the executive, who then basically said "but we can't say it like that."
But yeah, tax minimization is a huge thing with corporations. can you BLAME them? I mean, would YOU deliberately NOT deduct things on your income taxes so you can go ahead and pay MORE taxes? In any case, I still call into question the whole idea of raising taxes anyway, because there's another factor that I haven't mentioned yet: if taxation reduces profits, even if its paid by foreign investors, it still affects hiring and wages in EU and UK. And 3% doesn't sound like much, until it's raised every year by a tiny amount until it becomes confiscatory, because "they can".
And you know if "they" taxed you at 100%, they'd beg for more, and want to go to 110%.