Secondly...
I am not going to engage in a circular argument headed for nowhere. I posted information on the proposed Global Minimum Tax for which there is very broad international support and for a very good reason. This proposal is designed to solve a problem that exists in a vast number of countries around the world.
The problem is loss of tax revenue on profits generated by the sale of goods and services inside any given country due to multinational corporations shifting earnings out of the country, where revenue and profits were generated, and into tax haven countries to avoid paying taxes. This is the core issue. It is a problem that has
zero connection to: any single country, or its tax laws, or any political party, or any leader, or any single company, or where they are headquartered or incorporated. The questions surrounding that core issue are: where is taxable revenue generated and being taxed, what expenses are being deducted from that revenue to determine taxable income, where are those expenses allocated, and how are revenue and expenses entered into accounting ledgers that span across multiple national borders.
The loss of tax revenue thru the use of shell companies inside tax havens affects countries around the globe and has been happening for many decades. Loss of tax revenue is made possible by these facts: every country has its own unique set of tax laws, trade agreements, and corporate regulations; a multinational corporation sells goods or services and generates revenue inside of one country, but generally has expenses, both tangible and intangible, incurred in that product or service that derive from multiple countries; a multinational corporation which is operating across multiple national borders with differing tax laws, trade agreements, and corporate regulations has a team of lawyers and accountants that understand all of the laws, agreements and regulations in all of the countries where it conducts business; the task of their lawyers and accountants is to use the multitude of differing tax laws, trade agreements, and corporate regulations that exist in multiple countries to place assets and allocate revenue and expenses in ways that minimize paying any tax which they can avoid; shell companies are established in tax haven countries to accomplish that goal thru the use of those complex and varied laws, agreements and regulations.
When combined together, it works! Multinational corporations manage to
legally avoid paying taxes on a large portion of their global and domestic revenues by employing a tax haven shell game across national borders thru their allocation and accounting of assets, revenues, and expenses.
https://www.icij.org/investigations/panama-papers/what-is-a-tax-haven-offshore-finance-explainedTo be continued...
