Technology companies such as bankers begin to gain a bad reputation for themselves. The practice of channeling the benefits of the different branches of a company by countries with favorable tax rates is not new - far from it - but it becomes much prevelevent. Google recently asked to pay $ 14.5 billion in unpaid taxes in Europe, and this is not an isolated incident.
Small businesses naturally feel they are unfairly treated when the big players have the power and resources to play the system to their advantage. But it still does. In addition to $ 14.5 billion in Ireland, Google is also facing investigation in Indonesia on any unpaid taxes, and Apple has paid $ 118 million in "under-reporting of income from Japan.
In Apple's case, it was the arm that iTunes was the victim of local authorities. The company was convicted of failing to report money earned in Japan via iTunes before it was moved to Ireland - to benefit from incredibly low corporate tax rates in the country. Specifically, according to NHK, the regional tax Burea of Tokyo found that Apple has failed to pay tax at source on income generated from fees paid Japanese were transferred to Ireland to pay software license fees.
It is an example of precisely the kind of complicated financial sleight of hand have gotten used to. moves money around the branches, moved from one country, transported back in a similar way to money laundering, it is very difficult for the authorities to work exactly what happens. For this reason, the problem was not detected for so long, and why small businesses - which do not benefit multiple international ramifications, Shell companies, well-located offices, and so on - are so irritated.
Of course, there are many examples of "handling" very prudent of money that are completely legal. Morally questionable, perhaps, but perfectly legal, however. These are not really the problem - despite a higher degree of transparency would be appreciated by the public, rivals and authorities. It is interesting to see that companies are so desperate to publish transparency reports presented in a good light (facing the problem of diversity, etc.) and others in a bad light (the number of user data requests governments are, for example) are quite happy for your financial arrangements remain more opaque.
The latest news is that Google should be investigated by the tax authorities in Indonesia for allegedly not paying the tax on advertising worth several billion dollars. the Indonesian tax authorities wrote to Google in April requesting access to reports of the Company's tax - the suspicions were awakened when the company did not respond. Now he faces a complete financial probe the details of what is almost certain to remain as labyrinthine as the financial agreements already.