There has been a lot of heat about Apple’s tax abuse, and rightly so. There has been less focus on how to solve the problem and yet that answer is known. It is to be found in unitary taxation.

The automatic information exchange is happening. The country-by-country reporting is happening. Now we just need the logical tax system to follow on.

If you’ve got cbyc then you don’t need unitary. And if you’ve got unitary then you don’t care about cbyc either.

3 thoughts on “Amazing….”

  1. Totally agree, California has had unitary taxation since the mid-70s and it worked perfectly well as far as I’m aware.

    Of course we need this as well as country by country reporting so that people can be employed doing something that is not very useful-given that we could easily introduce unitary taxation-but at least it creates for them the impression that they’re doing something valuable and worthwhile.

    By doing this we create the opportunity for people to feel self-important, and that they are solving something that might be a problem but could have been solved much more easily by already existing approaches.

  2. So Ritchie also agrees that the EU decision is wrong since under his calculations negligible amounts would be due to Ireland as nothing really goes on there anyway according to him.

  3. The Apple scheme had been stopped before the Commission got involved (for the future; their judgement was about the past and the next couple of years), by Ireland bringing in a UK-style residence test under which any Irish-incorporated companies are treated as being automatically tax-resident there.

    Once you do that you can’t shuffle off profits to a non-resident branch because the whole profits are taxable.

Leave a Reply

Your email address will not be published.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