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Google, Apple and Microsoft Squirm As Global Tax Schemes Scrutinized
An anonymous reader writes: Google, Apple and Microsoft chiefs were hauled in front of an Australian Senate Committee on Wednesday and forced to answer questions about their tax dodging structures. "Under questioning from Greens Senator Christine Milne, [Google's Maile Carnegie] revealed none of the revenue derived from Google's lucrative advertising business is taxed in Australia, rather it is booked in Singapore where the corporate tax rate is set at 17 per cent, as opposed to Australia's 30 per cent. ... However in the strongest defense yet of the company's complex tax structure, Ms Carnegie attempted to highlight the hypocrisy of criticising global technology companies for using the same approach that Australian mining firms, like Rio Tinto, use when deriving profits from China. 'These are international tax arrangements and what Google is doing in Australia is very very similar to what Australian companies are doing outside of Australia. I am not sitting here today trying to defend whether those practices are right or wrong, they are simply the way the global tax system is currently working and we are trying to operate within that.' Ms. Carnegie said it was up to the government to create a different system, which the company would then abide by."
Mis-reporting income and expenses is fraud last time I looked. This goes for businesses where one division over-charges another to shift profits from one country to another. These practices are coming under increasing scrutiny globally.
Want to straighten the ad problem out fast? Sales tax in the country/state/county of purchase.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
If countries want tax revenue to stay in their countries, lower the tax rates to be come more competitive. After all, 17% of something is much better than 30% of nothing.
All that does is encourage a race to the bottom.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
There's a reason I feel zero guilt in using ad-block. It's perfectly legal for Google to dodge taxes this way, and it's perfectly legal for me to dodge Google's ads using browser extensions.
If you think the government gives you nothing back, you're right to be annoyed. I get free health care, free education, free social care, a welfare system to look out for me if I'm in trouble, a pension when I got old (perhaps). I get police to keep things in order and try to make sure that I get to keep what's left of what I earn, and a fire brigade to look out for me. An ambulance that'll take me to hospital if that doesn't pan out. I get money channelled into research no company would have an interest in pursuing, but that makes people's lives better. I get roads to drive and walk down, and parks to take my kids to. I get playgrounds and lakes. I get food that doesn't kill me, and toys that don't hurt my kids. I get a computer that doesn't injure me.
But yeah, down with the government.
jh
Mis-reporting income and expenses is fraud last time I looked.
They aren't mis-reporting their earnings. They simply are taking advantage of loopholes in the law. It's almost always perfectly legal. Morally dubious but quite legal.
Frankly when you can afford literally hundreds of staff specifically for the purpose of avoiding taxes by exploiting obscure loopholes in the law, you are engaging in something that is ethically on the edge. I'm an accountant and I find the tax avoidance practices of these companies to be reprehensible. I'm particularly disgusted by my colleagues who facilitate this sort of activity.