Profit Shifting

A 1-post collection

Profit Shifting – Unethical and Disgraceful

This month it was revealed 343 Australian and foreign companies had forged secret tax deals with Luxembourg to siphon profits into tax havens to slash their tax bills – some to nearly nothing. What happens when big multinational companies use the infrastructural benefits of one country to generate income and then park the major portion of that income in another country in order to take advantage of favourable tax laws in that low tax country? The country that actually helps the business to prosper loses their fair share of tax and the country in which the income is parked is rewarded for doing nothing other than being a low tax country. This is not only deceptive but distorts the world economy...