Re:TikTok Inc. vs. U.S. Department of Commerce
by czzr on Monday August 24, 2020 @03:13PM
(#24264276)
The location of your Corporate headquarters is different to the physical location of your company.
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Re:TikTok Inc. vs. U.S. Department of Commerce
by throwaway0a5e on Monday August 24, 2020 @04:29PM
(#24265155)
Payroll and property taxes follow the state of the employees, not the company. Taxes on profit are easy for a BigCo to dodge with good accounting.
Re:TikTok Inc. vs. U.S. Department of Commerce
by munk-a on Monday August 24, 2020 @05:24PM
(#24265696)
It's only easy to dodge them due to the current rules of accounting - we can work on fixing that component or enforcing minimal VAT taxes down-chain. For instance the US could require that a VAT of at least 20% be paid before reaching the US, then collect any taxes left on the table by, say, the bahamas when they only collect a 2% VAT - the US could gate goods entry based on a 18% fee on the difference.
This applies only to actual goods value (and doesn't look at capturing out-of-band transactions like online orders of virtual goods) but it's a really dead simple and easy to enforce law that'd kill a lot of tax dodging dead.
The real issue isn't that it's hard to tax these companies - it's that there isn't a significant political will in taxing these companies.