Reply to post: Re: why not

EU will have agreed a tech tax by March, says French finance minister

LucreLout

Re: why not

What am I missing?

Company A will be in a "tax haven" rather than America.

Software Biz (America) Plc sells to Sandy Shores Inc which sells to YouNeedIt (UK) Ltd.

SandyShores hangs on to the profit and doesn't repatriate it, thus it remains mostly untaxed. Because Software Biz (America) Plc owns Sandy Shores Inc, it can borrow against the money held there to pay dividends on shore.

That's a simplified version of what your favourite fanboy device company does.

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