Why you should not overuse tax planning

[dotbloup]

The UK government has busted several big companies in the past like Amazon, Starbucks, Vodafone or Google that overused tax planning. Either they paid very few tax or they declared losses while they were in fact successful. This attracted the attention of the local tax authority because their practices were too obvious.

Google, Amazon, Starbucks: The rise of 'tax shaming' - BBC News

In order to keep favorable tax systems in place in many countries & never attract the attention of local tax authorities in many countries, it is important not to overuse tax planning. Otherwise, the lawmakers will start to create laws against tax planning and we will all lose our benefits. Consequently, Businesses that are now profitable WILL get bankrupt if something like that happens because we aren't all amazon, Vodafone, Google and Starbucks... If many companies would pay the exact high percentage of corporate tax from countries like France, Germany or Italy they would get bankrupt.

As you may know you can decide to transfer trademarks, patents, domain names to a Seychelles or BVI company for instance and bill those to your company. It is important to do it in a reasonable manner. Pay a significant percentage of taxes and make your tax planning look natural.

Otherwise, the questions to you will sound like those ones:

 

[negon]

Really great share, now I will have to read and watch a little 🙂

 

[JohnLocke]

Thanks for the sharing. I don't believe that the number that actually incorporate their business in Cyprus will harm the island. They have been used to it for centuries. They need businesses to invest in their island to keep it going. I believe many Russians and people from the UK still live a great live there 😉

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​