Re:Macron says France and U.S. reached digital tax deal
by derriz on Tuesday August 27, 2019 @04:15AM
(#20807317)
Those are US corporate accounts and absolutely are used as the basis for US taxation. The fact that a corporation can make billions of dollars of profit but not have to immediately pay corporation tax on the profit was a quirk of US corporate tax law. Those tax liabilities really do exist. Just because you don't pay tax immediately (say on your salary) doesn't mean you are paying zero tax.
Re:Macron says France and U.S. reached digital tax deal
by luckylion on Tuesday August 27, 2019 @04:21AM
(#20807348)
> Those are US corporate accounts and absolutely are used as the basis for US taxation.
And this is about France. Not the US. US taxation doesn't matter to France. It's not their jurisdiction, they don't get a share of it, they cannot influence it. France. not US. France.
Those aren't for taxation, though. It's "our global company made profits in country X". The taxation is interested in the actual taxable profits in country X, and those are close to zero, because of said tactic (license fees, consulting fees etc). It's really well documented, and there's little incentive to change the whole tax system to account for tax-evasion strategies.