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Europe, Australia , India want their fair share of tax

 

The big American corporates are not safe anymore  with their complicated  tax structures  that let them pay minimum  tax . France and India ( vodafone case) have already started taking steps  to  amend  their country legislation to  make it harder  for  big corporates  to profit in their country without paying full tax.make money in their country while  small business and other countries  doe not get their fair share of  profits taken from their country.

UK and Australia  are currently are looking into the tax strategy known as the   Double Irish Dutch Sandwich ( The manoeuvre allows multinationals to move large amounts of money to other subsidiaries in the form of royalty payments )

dont tax me bro

Google chairman Eric Schmidt has defended the company’s tax policies, saying of the internet giant’s moves to get out of paying billions of dollars: “It’s called capitalism”.

Amazon, Google and Starbucks have been accused of an “immoral” use of secretive jurisdictions and complex company tax  structures to avoid paying tax on British profits by a committee of MPs.-http://www.guardian.co.uk

Europe and UK  hit hard with  the recession have also  amended tax laws and intend taking legal action  and more scrutiny of tax legislation  to  claw back more tax from these big American  company’s. The US itself is hurting with  it not getting much of the tax share  even though many of these top Tech companies are originally from  the US , but have their head offices in tax saving accounting havens with  the result of US also not benefitting much from the profits of these companies.

Apple Inc the tech company everyone knows paid an income tax rate of only 1.9 per cent on its earnings outside the US in its latest fiscal year reports Sbs.com.au

AMAZON

FRANCE has demanded $US252 million ($A242.72 million) in back taxes from Amazon, bringing into spotlight the online retailer over its controversial corporate structure in Europe.

The back taxes that the French are seeking from Amazon relate to earnings in France for the years 2006-10 and “the allocation of income between foreign jurisdictions”

Small, brick-and-mortar retailers have a legitimate gripe that Amazon’s avoidance of the sales tax gives it a competitive advantages

The guardian reports “ Amazon avoids UK taxes by reporting European sales through a Luxembourg-based unit. This structure allowed it to pay a rate of less than 12% on foreign profits last year – less than half the average corporate income tax rate in its major markets.”

Google.

 

Img from : http://www.watoday.com.au/business/how-savvy-multinationals-curb-their-tax-bills-20121116-29hhm.html

Starbucks

The Seattle-based coffee STARBUCKS company has 700 British outlets in UK , but has paid just STG8.6 million in corporation tax in 14 years. Starbucks Corp says this is due to a process involving paying royalties to its European headquarters in The Netherlands – perthnow.com

Amazon and Google confirmed that the companies both use favourable tax jurisdictions – Luxembourg and Ireland, respectively – due to their low taxation levels.

Google

The soul of Google’s (GOOG) international operations is a plush looking office building in  Dublin. In 2009 the office, which houses roughly 2,000 Google employees, was credited with 88 percent of the search Company’s $12.5 billion in sales outside the U.S. Most of the profits from various countries surprisingly went to the tax haven of Bermuda and not even the USA.

The Australian government using a combination of beefed up transfer pricing rules and a commitment to setting up a think tank that will review the elaborate tax structures, is making it  clear that Google, Apple, Amazon and any other e-commerce giants will need to pay more tax in the future if its doing business on its  shores.

 

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I am not myself in any degree ashamed of having changed my opinions. Be the change that you wish to see in the world and contribute your 2 cents to us , just like i did .I write articles as my hobby and interest ..how about you :)

 
 

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