Reply to post: Re: Isn't this the problem?

Silicon Valley Scrooges sidestep debt to society through tax avoidance to the tune of $100bn

Anonymous Coward
Anonymous Coward

Re: Isn't this the problem?

This is exactly the point - these companies are reacting to what the law is giving them. So it the law that needs to be corrected (or internationally co-ordinated) such that such options no longer exist. Finance people within these multi-national companies are paid to reduce the tax burden to the fullest extent possible - voluntarily causing the company they work for to pay more taxes on "ethical" grounds will get them fired in today's environment.

Now if consumers started paying attention to whether these companies are paying taxes in their own region rather than moving them to the lowest option like Ireland, Cayman islands, etc - that would be a different story, and could possibly cause the companies to change their behavior for PR reasons - but at the moment consumers don't see this as their responsibility.

Sad that France was forced in the EU to go it alone with their "digital tax" strategy (https://www.nytimes.com/2019/07/11/business/france-digital-tax-tech-giants.html) in which transactions are taxed at the point of sale within France, ensuring that some of the tax revenue accrues to the local market. The resistance of the the rest of the EU to this is a missed opportunity which would have gone a long way towards correcting this issue. Vive la France!

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