I keep thinking there is an alternative, and that is to tax the top line, not the bottom line. something along the lines of 20% of earnings or 5% of sales, whichever is larger. very hard to evade regardless of whatever shenanigans they work around Ireland and IP. In truth, I think this can be a very effective concept for most countries. earnings is such a nebulous idea, sales is pretty simple and easily determined.
There is a much simpler way and it was done in the US when it came to US states collecting sales taxes from Apple. It's also what Saudi Arabia did with ARAMCO in the 1970s basically started charging ARAMCO Saudi Taxes which were written off against USA taxes.
Basically, number of sales in country/state, whether phone, app store etc. then pro rata the tax difference between Ireland and the UK, let Apple deduct local costs incurred in country.
In a globalised economy, accruals based taxation on profits and capital gains doesn't work.
What you're proposing is basically a return to taxation on transactions and on a cash basis.
Essentially this takes us back to a 19th century Western tax regime, or a contemporary Russian one. Where tariffs, product excise and levies play a much greater role. I hope (but doubt) that we'll get a genuine land values tax too!
I keep thinking there is an alternative, and that is to tax the top line, not the bottom line. something along the lines of 20% of earnings or 5% of sales, whichever is larger. very hard to evade regardless of whatever shenanigans they work around Ireland and IP. In truth, I think this can be a very effective concept for most countries. earnings is such a nebulous idea, sales is pretty simple and easily determined.
There is a much simpler way and it was done in the US when it came to US states collecting sales taxes from Apple. It's also what Saudi Arabia did with ARAMCO in the 1970s basically started charging ARAMCO Saudi Taxes which were written off against USA taxes.
Basically, number of sales in country/state, whether phone, app store etc. then pro rata the tax difference between Ireland and the UK, let Apple deduct local costs incurred in country.
Long story short:
In a globalised economy, accruals based taxation on profits and capital gains doesn't work.
What you're proposing is basically a return to taxation on transactions and on a cash basis.
Essentially this takes us back to a 19th century Western tax regime, or a contemporary Russian one. Where tariffs, product excise and levies play a much greater role. I hope (but doubt) that we'll get a genuine land values tax too!
The problem is that tax advantaged systems have become industrialised... so some sort of change in needed