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A comment on Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year. Parent comment

Re:Microsoft Irish subsidiary paid zero corporate tax on £22... by wwtrv on Thursday June 03, 2021 @09:23AM (#27380904)
It’s not really that simple to measure the ‘value’ extracted from a specific country. If we’re considering digital goods Amazon UK could just transfer the profits to Amazon Luxemburg by signing an IP licensing agreement etc. for the same amount they would be taxes on in the UK. So the UK entity would operate at a loss/zero profit. AFAIK many companies are already doing this.
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Re:Microsoft Irish subsidiary paid zero corporate tax on £22... by aembleton on Thursday June 03, 2021 @10:04AM (#27381526)
Amazon Luxemburg is not a UK company, so it wouldn't feature in the UK costs. They would have to pay tax on UK sales - UK costs.

Import more (including IP) and you pay more tax unless you also increase your UK costs.

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