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Big Tech. Big Tax Avoidance? https://twitter.com/taxwatch/status/1056484850142773248 … These calculations are not new. Its simple to come up with big figures by applying global profit margins to sales, but this is not how the tax system works now (Me in 2016 on the same thing https://hiyamaya.wordpress.com/2016/01/25/did-the-uk-really-agree-to-charge-google-a-3-tax-rate/ …)
Perhaps tax system should change to destination base. There are good arguments. But as @DanNeidle notes its not how tax works now. Wld mean both losses & gains to UK. Calling tax 'not paid' compared to a tax system we don't have "avoidance" is misleadinghttps://twitter.com/DanNeidle/status/1056486228412063744 …
This news cycle can go round and round for ever generating headlines and heat, but no light. Or people could sit down as grown ups and talk about the issues seriously.
Interesting post. In 2015 Google said in their 10-k that all of their non US pre-tax profit was generated in Ireland. Would be interested to know how that fits with your analysis.
That was approx $8bn, as opposed to US income of just over $7bn - So more than 50% of the profit of google they said was made in Ireland in 2015. What parts of the value chain are being rewarded there?
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