Re:Apple to Pay £3.8m Tax on £1.2bn UK Sales
by AnthonyMouse on Monday July 01, 2019 @10:36AM
(#20325644)
> What is unfair, however, is the way that multi-nationals can shift profits across borders to low tax countries, putting them at an advantage relative to domestic competition who pay full UK corporate tax rates.
That unfairness is inherent to corporate income tax. Apple reports profits in Ireland because the rate is lower there, but if the rates were lower in the US or China or some other place where they actually have major operations and they reported profits there instead, the argument that the profits don't belong there falls away even though you have the same end result. And the same disadvantage for domestic companies compared to international ones.
The solution is to stop trying to tax "profit" to begin with and only tax the thing that actually happens in your jurisdiction (e.g. sales, employment, property ownership).
That unfairness is inherent to corporate income tax. Apple reports profits in Ireland because the rate is lower there, but if the rates were lower in the US or China or some other place where they actually have major operations and they reported profits there instead, the argument that the profits don't belong there falls away even though you have the same end result. And the same disadvantage for domestic companies compared to international ones.
The solution is to stop trying to tax "profit" to begin with and only tax the thing that actually happens in your jurisdiction (e.g. sales, employment, property ownership).