Tax Havens - a good thing ?

kabayiri

gingerdad wrote: »

The largest tax haven in the world is the City of London, look at the Non Doms etc.. so before people spout on about other "Tax Havens" look closer to home......

GD

You're spot on.

GingerSte

I imagine we wouldn't be able to get rid of tax havens totally, but that there are things governments could do to get rid of some of the loopholes that allow them to exist.

For example, the logo issue. Certain companies apparently avoid tax by having a company in a tax haven charge for their logo, and those profits would be immune from tax. Could the government decide that all payments to companies in tax havens be excluded from tax calculations (eg VAT)?

John_Pierpoint

Does anyone have experience of the Californian "sunshine" legislation?
I think it is meant to work like this: "Our accountants have worked out that you make a profit of 100 million world wide.
10% of your sales are in California, so we are going to tax you on 10 million of profits, what ever your dodgy transfer price manipulated figures may say.

As California is a very competitive market such a law is probably unfair but it gets the message across.