Tag Archive | "tax havens"

Is International Transfer Pricing Good For The Us Of A Or Bad For This Country?


Multinational companies should be made to pay taxes on foreign profits.
Newspapers use the phrase “transfer pricing” as shorthand for multinational corporations shifting profits to tax havens to avoid tax in developed countries.
Tax professionals bristle at this characterization, arguing that transfer pricing is a neutral phrase to describe the process by which profits are allocated among different jurisdictions as though corporate affiliates were separate economic actors transacting with each other at arm’s length.
The newspapers are correct. The members of large multinational groups of corporations are not separate economic actors. The point of vertical integration is not to have to pay arm’s-length prices for some goods and services. It is a fool’s errand to try to divine arm’s-length prices for intragroup transactions, particularly for valuable intellectual property (IP) that is never licensed to outsiders.
Financial accounting ignores affiliates and treats the corporate group as a single entity. But the federal income tax law treats affiliates as separate economic acdtors, giving multinationals free rein to determine where their profits should be taxed, or more likely, not taxed.
Multinationals report vast profits in tax havens like the Cayman Islands, Luxembourg, Switzerland and Ireland. Economists have documented massive shifts of multinational corporations’ profits to tax havens, in amounts wildly out of proportion to any economic activity taking place there. Some income is not taxed anywhere. Americans call it “nowhere income.” Europeans call it “white income.”http://www.forbes.com/2010/06/24/tax-fin…

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How Come Spain Has Such A Good Reputation?


Many countries have negative stuff associated to them. For example, the Italian mafia, the Russian mafia, the Japanise Yakuza, the Chinese triads.
Other have problems with the drug trade, for example Colombia and Mexico, or child poverty, like Brazil and the favelas.
Others have a bad reputation as tax havens, like Switzerland, because the took and hide the gold stolen to the Jews during the Hollocaust by the nazis.
USA has problems with shootings and gang violence.
The Muslim world has a problem with radicals an terrorism.
But Spain is never associated to any negative stuff. Ok, the economy is a bit slow now, and they have a high unemplyoment rate, but other that that, the opinion of everybody about Spain is very possible. Paella, fiesta, sun, bullfighting…everything seems to be positive about Spain.
I wonder why? Is it a marketing trick? Or is really Spain that good?
PS, There are other countries with a very good image, of course, like Canada, New Zealand, Norway, etc. What’s the secret?

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