Apple plans new U.S. campus, to pay $38B in foreign cash taxes

Re:Apple plans new U.S. campus, to pay $38B in foreign cash ... by madeofpalk on Thursday January 18, 2018 @03:22AM (#16175528)

Wait, is that actually the case here?

    For example, if a British company earns income
    in Germany, its pays German taxes on its German
    income. But if a US company earns income in
    Germany it pays both German taxes and US taxes.

If a British company sets up a company in Germany and that 'subsidiary' earns income in Germany and pays tax in Germany, and then wants to send its money back to the British company, does the British company need to pay tax on that?

Isn't that money new income for the British company, and therefor would be taxed accordingly? I think that's the key here.

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Re:Apple plans new U.S. campus, to pay $38B in foreign cash ... by netsharc on Thursday January 18, 2018 @04:57AM (#16175919)

Not answering your question, but the companies do tricks so they don't have incomes in some countries.

E.g. Starbucks in Germany... they buy their coffee from Sbucks Luxembourg, the amount of coffee needed to make a 7 euro coffee will also cost close to 7 euros, payable to the seller, Sbucks Luxembourg. So the German subsidiary has very low profits (7 euros for coffee beans for 1 cup of coffee!), and pay very little taxes. The Luxembourg subsidiary pay the local taxes, which are much lower -- as arranged by their then premier, and now current head of European Commission, Jean-Claude Juncker:

> In early November 2014, just days after becoming head of the commission, Juncker was hit by media disclosures—derived from a document leak known as LuxLeaks—that Luxembourg under his premiership had turned into a major European centre of corporate tax avoidance. With the aid of the Luxembourg government, companies transferred tax liability for many billions of euros to Luxembourg, where the income was taxed at a fraction of 1%. Juncker, who in a speech in Brussels in July 2014 promised to "try to put some morality, some ethics, into the European tax landscape", was sharply criticised following the leaks.[52] A subsequent motion of censure in the European parliament was brought against Juncker over his role in the tax avoidance schemes. The motion was defeated by a large majority.[53]

> In 2017, leaked diplomatic cables show Juncker, as Luxembourg’s prime minister from 1995 until the end of 2013, blocked EU efforts to fight tax avoidance by multinational corporations. Luxembourg agreed to multinational businesses on an individualised deal basis, often at an effective rate of less than 1%.[54]

If you buy something from European Amazon, the bill will be from Amazon Luxembourg. Same with Apple and Ireland...

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