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Re:European Union plans to tax tech giants on local revenue by dragonwriter on Monday March 05, 2018 @04:09PM (#16524426)
> Google spent a billion quid on their new HQ building in London. That's an awful lot to invest in a country where you make no profits...

Not really, if it's a regional talent center; Google needs physical locations where it wants to spend money by hiring people more than it needs them where it makes money, since it's moneymaking operations are not high-tech in-person interactions.

Re:European Union plans to tax tech giants on local revenue by gaius on Monday March 05, 2018 @04:12PM (#16524446)
Not really, if it's a regional talent center

It wants workers educated by the State, who travel on infrastructure maintained by the State, who have healthcare provided by the State, security provided by the State, yadda yadda yadda. All the advantages, but none of the costs.

Re:European Union plans to tax tech giants on local revenue by JOnAgain on Monday March 05, 2018 @04:26PM (#16524583)
Payroll taxes, income taxes on the employees, property taxes, and VAT on the employee's spending. Just saying generally that it's fine to have a business with employees in a jurisdiction even if the company is doing business elsewhere. Outside of this context, it's also a net win for the state if the business operates, employs people, and pays above said taxes, but doesn't manage to turn a profit provided it is a continuing operation.

Now, all that said, I don't think subsidiaries should be able to use licensing agreements and other loopholes to move revenue to eliminate profit and reduce corporate tax. To me the solution is just to disallow any movement money related to intangibles (payments or license fees) unless the exchange is a bona fide transaction between unrelated parties. These subsidiaries in different jurisdictions are all entities owned by the same holding co's. It's like selling your brother a house for $1 (or more like the use of your last name for $1 Billion).

Re:European Union plans to tax tech giants on local revenue by dragonwriter on Monday March 05, 2018 @04:29PM (#16524606)
Sure, and those are all benefits to the company that enable it to make profits elsewhere, but that doesn't mean it's making any profits in the UK. (Though you could make the reverse of the upthread argument about charges between sister companies, that this suggests the British subsidiary is undercharging the subsidiaries that are making money.)
Re:European Union plans to tax tech giants on local revenue by JoshTriplett on Monday March 05, 2018 @04:19PM (#16524504)
And in that case, both the company and the employee pay substantial income taxes.
Re:European Union plans to tax tech giants on local revenue by neumann on Monday March 05, 2018 @04:25PM (#16524567)
Did you read the article? The whole point is that the companies do not pay the income tax by routing revenue through other countries offering tax cuts
Re:European Union plans to tax tech giants on local revenue by JoshTriplett on Monday March 05, 2018 @04:43PM (#16524736)
I read the article; it says nothing about income tax. It talks about corporate tax, which gets into the reasonably debatable issue of "if you serve from country X and users are in country Y..." If you have no legal nexus in a country, it's a lot more reasonable to pay no tax in that country.

If you have employees in a country, then you necessarily will pay income tax in that country.

(Also, https://news.ycombinator.com/newsguidelines.html .)

Re:European Union plans to tax tech giants on local revenue by mulmen on Monday March 05, 2018 @04:29PM (#16524613)
I thought the point of the new tax was that Google pays next to no tax in Europe. Can you explain the current income taxes Google pays now?
Re:European Union plans to tax tech giants on local revenue by petre on Monday March 05, 2018 @04:32PM (#16524636)
That's probably why they built it in the UK and not in Belgium or any other EU country with insane taxes for that matter.