So Google billing UK sales from Ireland when they’re sold by people in the UK reflects wgere genuine economic activity takes place, does it? Or Amazon billing sales from UK warehouses from Luxembourg does the same? What do HMRC think we are? Gullible, or just stupid?
No, we think that these companies are being tax compliant. Not even tax planning and certainly not tax avoidance. For this is exactly what the European Union desires and intends companies should do. The EU is a single market. The clue\’s in the description: Single Market.
You are thus not only allowed to but actively encouraged to have one base and one base only within the EU. From which you sell to all of the EU. And you get taxed on where your base is. Not where your sales are, not where the warehouse is but where the brass plate is.
This is not an aberration of the system, a misuse of it. It is the purpose and aim of the system. Companies are doing exactly what the setters of the law intended they should. Even in MurphWorld this is tax compliance.
Murphy bangs on about tax compliance all the time. Then complains when people are tax compliant.