Companies who pay zero tax (rolling thread)

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Dont really want to defend Microsoft but investment holding companies, generally, pay little/no tax everywhere in the world, because their income is mostly dividends (which are generally non-taxable) from other trading companies that should have paid tax already on those profits.

That company wouldn’t pay tax in most countries and the rule changes mentioned wouldn’t change that.

Be interested to know if you could fish up what they did pay. And surely the money going into that investment holding company for dividends is profits from other businesses?

Yes, but the other businesses will pay tax on the profits. Because if you pay on the trading profits and then the parent pays tax on dividends, they pay tax on the same profits twice.

Here has their tax rate at 14%

https://finbox.com/NASDAQGS:MSFT/explorer/effect_tax_rate

Again not defending Microsoft, just how corporate tax works.

Wouldn’t they technically be in debt to the investor, and therefore not be in profit?

Only the interest on debt impacts a company’s profit and loss for tax purposes. There’s legislation in place to make sure big multinationals like Microsoft charge themselves market rates so as not to avoid tax but it’s very difficult to enforce.

Not really, it depends on how they are set up. There are 2 ways to invest in a company

-capital e.g. shares in the company and you own it and its only usually repayble if the compamy is wound up, which isnt debt and doesn’t effect the profit of a company (which is my vague recollection of how the Microsoft subsidiaries were held)

-debt e.g. a loan, which is repayable with interest etc. and only interest part is deductible from profits

Either way dividends will generally only be paid from the profits (or a reserve of profits built up over a no. of years) of the company after tax.

I can’t comment on Microsoft specifically.

However, at the risk of outing myself as a Republican quickly after re-joining these boards, one thing that Trump did get right in my personal view was to introduce a new minimum tax for US companies on their foreign profits (effective rate of 13.125%). The OECD/G7 is now copying these rules albeit they are proposing a further restriction that you can’t blend low-tax/high-tax foreign profits (Biden would like to do this too) - at the moment if you pay no tax in Country A but lots of tax in Country B you can take the average under the US tax system.

I didn’t know where to put this. Is there a fuck Amazon thread?

I have a feeling charging Amazon $25 rent per locker is a poor deal for the city.

And this is just astonishingly bad. I can’t wait for access to the parks to be limited to prime users.

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“It just looks crazy. I don’t even understand how someone could’ve thought that was an OK place to put it”

In Facebook comments, locals said the new Amazon “hub” is not only unsightly, but is also a glaringly obvious safety concern because it prevents people with strollers and people in wheelchairs from easily passing through the public park.

Yes. But also no.

The amount of encroachment on pedestrian spaces sends me wild with rage basically every time I set foot outside the house.

So this abomination is nothing new.

But, yeah, it is an abomination.

I have a feeling charging Amazon $25 rent per locker is a poor deal for the city.

Just a measure of how supine national governments are in relation to these corps. And, as a knock-on, how desperate local government can be when crumbs fall from the table.

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