Tango with the Tax Man: Multinationals Find Loopholes Galore in Europe

[sysop]

Large multinationals, many of them based in the United States, are masters at avoiding taxes on profits made abroad. Apple, for example, paid just $100 million in taxes in 2010 on overseas profits of $13 billion. But Germany would like to put a stop to the practice, and is finding some influential support. <i>By SPIEGEL Staff</i>

http://www.spiegel.de/international/...-a-866989.html

[yiannaki]

And we are complaining about Greece ????

[eks2040@aol.com]

I trust there is no disagreement over the objective of companies to maximize profits for their shareholders, and given the different laws and tax jurisdictions the companies will do their utmost to achieve their goals. Whereas the countries write their tax rules based on differing concepts, companies work on minimizing their impact. It is also clear that high tax rates stimulate their avoidance, and there are plenty of helpers exploiting the loopholes, intended or not.
One possible solution is a substantially reduced rate of taxation, the simplification of the system and the elimination of the loopholes.
Perhaps too radical for the tax collectors is the elimination of corporate taxes altogether, as the companies merely function as collectors for the states and roll the cost forward into their selling prices. The consumer pays it all anyhow. This would solve the issue for good. Karl