Reply to post: Re: About bl**dy time

US slaps tariffs on countries that hit Big Tech with digital services taxes ... then pauses them immediately

Dave314159ggggdffsdds Silver badge

Re: About bl**dy time

"there are plenty of companies that have a subsidiary in the UK that serve millions of customers, yet apparently make no profit at all. It kind of makes you wonder why they bother to maintain a subsidiary here when it apparently generates zero profit, doesn't it?"

This is mostly because the tax system is deliberately designed to encourage reinvestment for growth, because it's better to take less tax now and more in future. For years Amazon were reinvesting all their profits, and now they're huge and are starting to pay enormous amounts of tax.

There are also companies like Starbucks, where they've just got it wrong. Starbucks didn't pay profit tax because they were paying too much in rent in the UK. They established a big market presence here, are very prominent, but haven't actually made any money.

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