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If you mean the cash, why would they need to get these funds back?

Earnings are posted from the group. Credit lines and capital market borrowing similarly have limited ties to jurisdiction. Regulatory filings can be arranged to not post detailed transfer pricing information.

If they ever want to pay a dividend, the cash they have on hand for on-going concerns should more than cover it. Where it does not, they can have it "loaned" from the foreign subsidiaries and gain even more tax efficiencies...

Otherwise, much of the time, they can just leave it in control of Bermudan and Irish accounts; at least, until debt-ridden, revenue-starved, middle-class squeezed Western governments start moaning a little too loudly and the tax accountants and lawyers prepare to roll out the next tax avoidance schemes down the closest tax haven rabbit holes!



This is one that bothers me - UK government is chairing the G20 and is pushing "fixing international corporate taxation"

It's popular amoungst all the member nations, but there seems to be absolutely no clue what to actually do

If anyone has a suggestion there are a lot of people waiting to listen ?


>UK government is chairing the G20 and is pushing "fixing international corporate taxation"

That's rich, considering London is one of the biggest tax havens around.

http://www.guardian.co.uk/money/2007/jul/08/tax.business1


Every western government has off shore havens they give a nod and wink to - but it's this very prisoners dilemma that the G8 etc want to solve.


Did you realise that the article you linked was from 2007?

I think it's safe to say that the political and economic landscape has changed a little since then.


I looked around and they still have non-domicile rule. Since 2008, they added an annual £30,000 fee, but that's nothing if you're rich.

http://www.theaustralian.com.au/news/world/london-is-a-magne... http://en.wikipedia.org/wiki/Taxation_in_the_United_Kingdom1...


Might be an idea for the UK to close down all of the offshore tax havens we control first before asking others to do the same....


Seems like it might be kind of a prisoner's dilemma situation: the best outcome is if everyone shuts down their tax havens, but you're individually worse off if you shut down yours and the other players don't, so no one wants to do it.


It's popular amongst the member governments. They're always after more money to waste.




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