It got so bad that late last year Starbucks promised to pay an extra £10 million — about $16 million — in 2013 and 2014 above what it would normally have had to pay in British income taxes. What it would normally have paid is zero, because Starbucks claims its British subsidiary loses money. Of course, that subsidiary pays a lot for coffee sold to it by a profitable Starbucks subsidiary in Switzerland, and pays a large royalty for the right to use the company’s intellectual property to another subsidiary in the Netherlands. Starbucks said it understood that its customers were angry that it paid no taxes in Britain.
How Apple and Other Corporations Move Profit to Avoid Taxes - NYTimes.com - 0 views
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“It is easy to transfer the intellectual property to tax havens at a low price,” said Martin A. Sullivan, the chief economist of Tax Analysts, the publisher of Tax Notes. “When a foreign subsidiary pays a low price for this property, and collects royalties, it will have big profits.”
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it is especially hard for countries to monitor prices on intellectual property, like patents and copyrights.
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Why Is Zambia So Poor? And Will Things Ever Get Better? - 0 views
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Sixty-four percent of the population lives on less than $1 per day, 14 percent have HIV, 40 percent don’t have access to clean drinking water. Almost 90 percent of women in rural areas cannot read or write. Name a category—schools, health care, environment—and I’ll give you statistics that will depress the shit out of you.
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For more than 150 years, the only reason to come to Kitwe—to Zambia, really—was the copper.
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Most of the buildings in Kitwe, the roads, the health clinics, the schools, were built by the national mining company
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Tax Breaks for Companies Like Apple Investigated by E.U. - NYTimes.com - 0 views
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The subcommittee said that Apple had “exploited a difference between Irish and American tax residency rules” but had not broken any laws.
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Among the ideas under consideration are strict rules for defining where a company has a permanent presence and measures to limit the practice of so-called transfer pricing — the shunting of profits and losses between subsidiaries by disguising them as internal corporate payments for goods or, as is increasingly common, for copyright or patent royalties.
Daniel Gros calls for a broad array of EU measures to revive output growth and strength... - 0 views
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Restarting Ukraine’s Economy
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the price of gas must be increased substantially to reflect its cost,
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governance of the country’s pipelines, which still earn huge royalties for carrying Russian gas to Western Europe, must be overhauled.
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