Mage246
thick1988 说:
Right, because companies never lie about their bottom line to attract investors. Plus, your method doesn't do a damn thing about companies that stash their money in tax shelters.you see, your method results in the following:
Company X is based in country A, but also operates in country B. Profits earned in country A are taxed in country A, and profits in country B are taxed in country B. Additionally, when profits in country B are transferred to HQ in country A, they are also taxed by country A.
But what if, instead of sending profits back to Country A, Company X instead sends the profits to banks in Country C, which charges little or no tax? Then Country A never gets to tax Company X for those profits at all, even though Company X is still free to use that money to buy things and ship them to Country A (thereby qualifying as either imports or investment).
Also, if you were thinking of separating profits by country and not taxing their repatriation, keep in mind that multinationals, even if they make most of their profit if one country, likely have most of the their R&D and management in another. If you don't allow that country to consider international profits, then they are really getting cheated, because on the national balance sheet it looks like the company has mostly liabilities and very little profit. Which means that even though a country might invest in the infrastructure necessary to drive innovation, they won't see the money from it.
Simple rules sound good until you look at how things actually work.
