Re:G7: Rich nations back deal to tax multinationals
by bonzini on Sunday June 06, 2021 @02:42PM
(#27415246)
The difference between moving money in your situation and in Apple's, where there's no correspondence between where engineers are located and where IP is licensed from.
By forcing all revenue to go through a single point (the headquarters) it's much harder to establish fake licensing like Apple Ireland's.
Re:G7: Rich nations back deal to tax multinationals
by kgwgk on Sunday June 06, 2021 @03:21PM
(#27415533)
Ok, I was commenting on the US subsidiary of Canadian firm example (which you didn't seem to agree on).
But I don't think that the meaning of "forcing all revenue to go through a single point" is clear at all.
From the point of view of most countries sending money out to Cupertino wouldn't be an improvement over sending it to Cork if that still means that they don't get to tax it.
The context was "If I’m a Canadian software company that does most of its sales in the US through an American subsidiary (not uncommon), the way it works is the American subsidiary pays the Canadian company back for the sales of the Canadian company’s IP."
The IP production occurs in Canada where the R&D departments exist and salaries have to be paid and the US subsidiary company pays to the Canadian parent company.
They cannot just "move all revenue back into headquarters' coffers."