It’s a category error - the misalignment calculations don’t and can’t measure tax avoidance or evasion. They measure the imperfection of the status quo vs an idealised unitary tax system
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OK so I tried the indicator calculation out on Pearson (since they publish CBCR)pic.twitter.com/BHT6A0yYzI
Here is the result. A billion of IFF/profit shifting out of the US (in order to increase its loss there?!?) into mainly UK & China https://docs.google.com/spreadsheets/d/1J6a_fYcthaaD5MKtfyV971-foP1aVI3TcmDAy1KalNk/edit?usp=sharing … Not sure this makes any sense ( or sits with illicit arms sales, stolen assets & organised crime?)pic.twitter.com/iD1OsKHvxo
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I have no knowledge of Pearson’s tax affairs but that cannot be right.
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(* note -- its close but not quite what the proposed indicator would measure - indicator uses outward sales while Pearson report revenues including intracompany transactions ....but its close enough to get an idea of what the indicator captures in practice here)
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That report you are using does actually beg a lot of questions, even though you are using a very anomalous year to say the least. Their statutory profit differs from their adjusted operating profit due to 2.7bn worth of intangible charges?pic.twitter.com/3kvpSZrD5E
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So we have a company which makes a loss of over 2bn, but their management accounts show an operating profit of 600m because more than 50% of the revenue is paid out in 'intangible charges' and your response to this is - move along nothing to see here?
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Thanks Maya. Interesting to see how this looks for a multinational making a global loss in excess of half its revenues. Not, I think, likely to be terribly relevant for the aggregate picture - but still interesting.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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