Dilbert_X wrote:
Cybargs wrote:
I think you missed the point how these companies avoid tax... Essentially Google USA contracts with Google Cayman's for 'certain services' - the whole point of profit shifting.
That's straightforward fraud, contracting for non-existent goods or services to evade tax.
Sling a few of these guys in prison for a few decades and it should stop.
Really, its not too hard to get things like simple law changes done - except in America with its mediaeval democratic process.
No it's not fraud. It's just parties aren't negotiating at arms lengths. They are still two separate legal entities. there are still work to be done.
Courts do not judge what is the 'fair value' of a contract. For there to be consideration, there just needs to be a quid pro quo. You can sell your car for a peppercorn and the contract will be binding regardless of the market value of said car.
The issue gets even harder when conglomerates are involved.
Last edited by Cybargs (2016-08-10 19:15:38)