News for hackers. Stuff that matters.
Re:G7: Rich nations back deal to tax multinationals by naveen99 on Saturday June 05, 2021 @08:25AM (#27404329)
A 100% license fee seems like a non arms length transaction at a non market rate.
Re:G7: Rich nations back deal to tax multinationals by eoo on Saturday June 05, 2021 @09:23AM (#27404767)
Yep, this is just the introduction to these kinds of thing. Then, they start to get accountants in both countries to agree on what seems a reasonable rate, say 30%? And the other 70% can be delayed earnings or whatever, and then maybe they decide to reinvest it instead. The list of resources is bottomless and continuously increasing.

What matters is that because the savings are potentially huge, your BigCo is incentivized to reduce that tax exposure and they've got the legal and accounting workforce to find that optimization.