Re:Paradise Papers: Dear Tim Cook
by gwenzek on Wednesday November 08, 2017 @04:02PM
(#15657000)
I think it would be the only solution, because it will always be easier to manipulate your benefits than earnings.
Although we could imagine something more complex: pay taxes on (revenue - expenses to compagnies that also pay taxes).
So now if you buy a product $100 to a company paying 25% taxes and sell it $110, you pay taxes on the $10, but if you buy your product to a company in some island, you pay taxes on the $110.
Smarter: if you buy to a company that pays a 20% tax while in your country you should pay a 30% tax, then you pay taxes on ($110 - $100*(30%-20%) = $20).
Everything get more complex but it's just a bit more CPU time.
Although we could imagine something more complex: pay taxes on (revenue - expenses to compagnies that also pay taxes).
So now if you buy a product $100 to a company paying 25% taxes and sell it $110, you pay taxes on the $10, but if you buy your product to a company in some island, you pay taxes on the $110.
Smarter: if you buy to a company that pays a 20% tax while in your country you should pay a 30% tax, then you pay taxes on ($110 - $100*(30%-20%) = $20).
Everything get more complex but it's just a bit more CPU time.