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Re: Changes on the High Street
Quote:
Originally Posted by nomadking
The profits have already been taxed in the UK, why should they be taxed again? Who says they would be subject to UK tax again? It could be another country, eg a tax haven.
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If it were only that simple...
https://www.tba-associates.com/globa...-study-google/ [quote]
https://www.theguardian.com/technolo...-shaped-amazon
Quote:
Amazon Europe Holding Technologies SCS (AEHT) would own the legal right to use Amazon’s intellectual property, or IP, outside the United States. Because it was a specific type of legal entity, called a “non-resident partnership”, any money it received from other Amazon entities in exchange for the right to use that IP would be tax-free.
2. Amazon EU Sarl, which operates Amazon’s European businesses, would pay AEHT hundreds of millions of euros in “royalty fees” for that IP each year. The cost of the royalties would be offset against its own tax bill.
3. AEHT would pay Amazon’s US business its own royalty fees for the right to license out that IP in Europe.
While EU regulators argued that the royalties between the two Luxembourg companies were too high, US regulators argued the royalties paid back to Amazon’s American headquarters were too low. The net effect of the baroque Project Goldcrest was to reduce Amazon’s taxes everywhere.
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