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Der SPIEGEL rumbles the corporate european tax loopholes and US taxes disappearing into the Bermuda triangle.


Lassie

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Der SPIEGEL rumbles the corporate european tax loopholes and US taxes disappearing into the Bermuda triangle.

While Ireland's narrative is of a low tax business model on which our export economy hinges SPIEGEL explains how multinational corporations enjoy loopholes galore in Europe.Germany's starting to rumble on legal "options for fiscal optimization." eg Apple paid $130 million on profits of $13Billion. That's 1%. It goes on to state that image conscious corporations like Starbucks and Pepsi are anti social when it comes to sharing their profits with the people of their host countries though paying tax. Schauble is getting serious about closing down tax havens like Bermuda and legal tax avoidance measures. '1,000 US companies have moved substantial assets abroad valued at roughly $1.5 trillion, or one tenth of the country's national debt'.



This is how the Google system works: All earnings achieved in Europe are posted to Google Ireland Ltd., headquartered in the Irish capital Dublin. German fiscal authorities have no access to these revenues and profits, because the company does not maintain any places of business in the classic sense in Germany.

Google Ireland reported revenues of €10.1 billion in 2010, but they were almost completely consumed by advertising expenses and personnel costs for the company's 2,000 employees. The largest expense, about €7.2 billion, consisted of licensing fees that Google Ireland paid to another Google subsidiary in the Netherlands. In this manner, almost all of the income was sucked away from Dublin. The Irish state was left with only €16.8 million in revenues subject to corporate income tax, as well as the taxes on employee wages.

Google Netherlands Holdings B.V. in Amsterdam, which collected the licensing fees from Dublin, is a company without employees. It paid only €2.7 million in corporate income tax in the Netherlands. That's because the Dutch company funneled the lion's share of its revenues from Ireland back to the Emerald Isle, in the form of a licensing fee to Google Ireland Holdings.

The Bermuda Treasure Chest

Shuffling billions back and forth may seem absurd to the uninitiated, but it's worthwhile. Google Ireland Holdings is in fact domiciled in two places. It was established under Irish law, but its administrative headquarters are in Bermuda. The benefit for Google is that there's no corporate income tax in Bermuda.

The operation is complicated, but it's extremely lucrative. It allows Google to move its earnings, which consist mainly of advertising revenues, out of Europe while paying almost no taxes there, depositing them in a tax haven to which the US Treasury has no access. The US authorities would be able to tax these earnings only if they were later distributed to the US parent company, but that seems unlikely at this point. Google has amassed some $24.8 billion in largely tax-free income in its Bermuda treasure chest..........

Belgium, for example, has one of the highest corporate income tax rates in the world: 33.99 percent. In practice, however, the debt-ridden country collects far less from companies, thanks to loopholes in its tax laws. The average tax burden of the 50 most ingenious companies, with total earnings of €27 billion in 2010, was a paltry 1.04 percent.
Effort to Close MultinationalTax Loopholes Gaining Steam - SPIEGEL ONLINE
 
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Lassie

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Couldnt make up my mind between europe /economy so please adjust if needed.
 

Radix

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I think everyone should be delighted with profitable companies who employ people.

That the currency of these profits is derived from jurisdictions which cannot force them to be reinvested into these very same jurisdictions is a cause for international worry, since it can only cause a glut in the international money supply as Central Banks make up the shortfall, while the prospect remains that one day this money will return to the marketplace, reducing the value of an increased level of circulated currency brought about by those who 'sit' on profits.
 

pragmaticapproach

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I think everyone should be delighted with profitable companies who employ people.

That the currency of these profits is derived from jurisdictions which cannot force them to be reinvested into these very same jurisdictions is a cause for international worry, since it can only cause a glut in the international money supply as Central Banks make up the shortfall, while the prospect remains that one day this money will return to the marketplace, reducing the value of an increased level of circulated currency brought about by those who 'sit' on profits.
Central banking should be phased out, we need a free banking system with competing currencies. Money arises organically and spontaneously in the marketplace not by state decree.

What we need is

*The abolition of capital gains tax
*The abolition of corperation tax
*Replace all income based taxation with a simple consumption based tax
*Free banking and competing currencies.


[video=youtube;cMn9pc-aTDQ]http://www.youtube.com/watch?v=cMn9pc-aTDQ[/video]
 
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