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G7 taxation proposals vs zero-10


pongo
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Posted (edited)
1 hour ago, Andy Onchan said:

Why do e-gaming companies pay tax when most other companies pay zero?

Probably because the tax rules in those countries require them to.  If they are licensed, presumably they are 'present' there and so tax resident.  Tax residency criteria vary around the world, so it is hard to be definitive, but you can bet there will be licence agreements, service agreements or similar arrangements which bring a large part of the revenue back to the centre.  Also, it will depend on whether there are separately incorporated subsidiaries, or they operate as branches.  Or even if there is the traditional holding and subsidiary company structure, or discrete apparently autonomous structures which are held together in a non-corporate way. 

It is very complex, and tax is a driver,  but so are asset protection, limitation of liability and privacy. 

Edited by Gladys
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2 minutes ago, The Dog's Dangly Bits said:

They pay tax where their revenues arise.  Do you think they don't?

If he did why would he ask why they pay tax? As you would say "think about it".

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1 minute ago, finlo said:

If he did why would he ask why they pay tax? As you would say "think about it".

I thought he was being deliberately obtuse to be honest.

Having said  that there is an alarming lack of understanding about the industry (as you seem to prove) so i guess anything is possible.

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7 minutes ago, The Dog's Dangly Bits said:

I thought he was being deliberately obtuse to be honest.

Having said  that there is an alarming lack of understanding about the industry (as you seem to prove) so i guess anything is possible.

Now let me see, they bleed you dry until you're on the bones of your arse have I missed anything?

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At first glance the whole thing seems like a dream for big accounting companies. More wooly rules with potential for vast loopholes while governments are seen to be “ doing something” about the “ tax problem”. The numbers behind the profit accounting will be far too complex to scrutinise properly and the opportunity for double counting (or triple, or more) overheads and expenses when calculating those profits are huge.

Currently it looks like only a few, really big, companies are being targeted but, once established, everyone will be subject to the same rules. Something else to stop small firms growing organically..............

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https://www.itv.com/news/channel/2021-06-03/us-president-to-force-end-of-jersey-and-guernseys-zero-ten-tax-system

"This is about big companies and their sales and services and goods in large domestic economies. It's not really about our kind of centre. We're investment centres. We're not house trading businesses. It's investment capital that's done here and I don't think any of those companies store their capital in Jersey."

Richard Murphy - https://www.itv.com/news/channel/2021-06-07/g7-tax-reforms-a-challenge-to-the-very-core-of-jersey-and-guernsey

It's kind of weird that we aren't even mentioned in these.

https://www.theguardian.com/technology/2021/jun/06/global-g7-deal-may-let-amazon-off-hook-on-tax-say-experts

https://japantoday.com/category/politics/g-7-nations-sign-key-pact-to-make-tech-giants-pay-fair-taxes

https://www.mail.com/int/business/markets/10845124-g-7-steps-to-deter-tax-dodging-multinational-firms.html#.1258-stage-mostviewed1-1

https://www.bbc.co.uk/news/blogs-the-papers-57372626

“The ones that have traditionally served the personal market — that is the palm tree market if you like — they are by and large going to get away with this,” said Richard Murphy...."

“It is the large corporate locations like Luxembourg, like Ireland, like the Netherlands that are really going to be picking up the hit here,” he said.

Countries worst hit are expected to lobby hard to retain as many of their tax advantages as they can. Key accountancy definitions such as “profit” and “tax paid” are still to be defined, Murphy said.

While Murphy saw less impact on many traditional British tax havens..."

“Tech is obviously going to be hit but so is financial services in a big way,” Murphy said. “Banking and finance are all in the firing line for this, as are potentially some of the pharmaceutical companies.”

https://www.businesslive.co.za/bd/world/2021-06-08-britains-treasure-island-network-of-tax-havens-under-threat-as-tide-turns/

 

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