Re:Yahoo to Spin Off Its Core Businesses
by barretts on Wednesday December 09, 2015 @11:21AM
(#10704557)
Any reason I shouldn't see this as a complicated tax dodge? Simply more multinational pilfering from public coffers? Why shouldn't the Alibaba capital gains be taxed?
[ Parent
| on HN ]
Re:Yahoo to Spin Off Its Core Businesses
by fredkbloggs on Wednesday December 09, 2015 @11:24AM
(#10704588)
I assume your question was intended as rhetorical, but there's an actual answer to it: because when the owner of the Yahoo stock (or a hypothetical Yahoo holding company for Alibaba stock) sells his shares, he will pay tax on his gain from that holding.
To turn the question on its head: why should some capital gains be taxed twice and others once (or in rare cases, three times or not at all)?