And Andrew Rawnsley is an idiot

The anti-avoidance measures agreed last year by the OECD need to be strengthened and implemented with more urgency. At the heart of tax avoidance by mega companies is the continued exploitation of tax havens. Apple has $200bn salted away offshore. Google has more than $40bn, the bulk of it stuffed in its Bermudan piggy bank.

The point being that this isn’t a feature of the European tax systems, nor even of the tax havens. This is purely a feature of the American tax system. The American corporate income tax is only applied on the repatriation of those profits. If the US even had something like the CFC rules then it just wouldn’t be happening.

This isn’t about our law, it’s about their, something we have no control over.

6 thoughts on “And Andrew Rawnsley is an idiot”

  1. And Samsung can invest its non-US profits in the US without paying US tax, but Apple can’t.

    It’s really a very perverse set of incentives there.

  2. This is little more than “Ooh look, they have a lot of money which we need to fill the gaping hole in our coffers caused by our own incompetence. How can we get our hands on it?” Seriously, the cunt is talking as if the money is rightfully his.

  3. The US does have its equivalent of CFC rules in Sub Part F of the US code. US corporations are taxed on the passive income of their subsidiaries resident in tax havens. It still makes sense to keep cash their to defer to tax on undistributed income and to apply credits for foreign taxes in other countries against low taxed income in the same foreign tax credit limitation basket arising in the tax haven.

Leave a Reply

Your email address will not be published. Required fields are marked *