Multinationals exist to make a profit. It follows that to make this profit and keep the shareholders and the Directors happy, they will strategise to continuously making their profit. This impacts on the level of strategies that they deploy to thwart off competitors and to encourage innovation by guessing what the customers will demand. This drives innovation. In this environment, one is likely to see highly trained human resources that are strategically giving counsel on all fronts whether as engineers, tax lawyers, marketing etc. Part of reducing the operational expenses will be to reduce taxation. Whilst Tax evasion is illegal, tax avoidance is not illegal and depends on the jurisdictions in play. This is why when companies choose location, they are looking holistically into the environment that makes it conducive for them to do business (cost of production, taxation etc etc).<div>
<br></div><div>This is where Governments engage in Trade Negotiations and Tax Treaties, these schedules are negotiated. Because by its very nature, the world has diverse treatments and laws because countries are sovereign, it follows that it will have external implications. This is just a product of the different systems. </div>
<div><br></div><div><b><u>What sort of checks and balances are needed for this multinationals?</u></b><br><ul><li>Do they "self-regulate"?</li><li>Should there be checks and balances?</li></ul><div><b><u>What are some considerations?</u></b></div>
</div><div><ul><li>Human Rights Concerns and Responsibilities - These include Economic Rights, Socio-cultural Rights, Civil and Political RIghts;</li><li>etc</li></ul><div>The reality is that it is going to be difficult as countries are sovereign and will regulate as they please. At the same time, multinationals also have the "freedom of choice" and they can wield at <b><u>their</u></b> will. </div>
<div><br></div><div>I am not a fan of heavy handed regulation but think that dialogue helps people consider their "actions" or the impact thereof. A multinational would probably not want to put out "free apps" for fear of having it stolen and duplicated and sold. If IP protection is secured, then this could be an incentive to land it for "free" in Taiwan.</div>
<div><br></div><div>Sala</div><div><br></div><div><br></div><div><br></div><div><br></div><div><br></div><div><br></div><ul><li>Jul 9, 2011 at 10:14 PM, Philippe Blanchard <span dir="ltr"><<a href="mailto:philippe.blanchard@me.com">philippe.blanchard@me.com</a>></span> wrote:</li>
</ul></div><div><div class="gmail_quote"><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;"><div style="word-wrap:break-word">An international agency... this is the only way to avoid tax competition between territories (or even worst, tax exemptions).<div>
Philippe</div><div><font color="#888888"><br></font><div><div><div></div><div class="h5"><div>On Jul 8, 2011, at 8:19 PM, michael gurstein wrote:</div><br></div></div><span style="border-collapse:separate;font-family:Helvetica;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;font-size:medium"><div lang="EN-US" vlink="purple" link="blue">
<div><div></div><div class="h5"><div><span><font color="#0000ff" size="2" face="Arial">Well then who can/should tax/regulate these?</font></span></div><div><span><font color="#0000ff" size="2" face="Arial"></font></span> </div>
<div><span><font color="#0000ff" size="2" face="Arial">M</font></span></div><blockquote dir="ltr" style="margin-right:0px"><div></div><div dir="ltr" lang="en-us" align="left"><font size="2" face="Tahoma">-----Original Message-----<br>
<b>From:</b><span> </span><a href="mailto:governance@lists.cpsr.org" style="color:blue;text-decoration:underline" target="_blank">governance@lists.cpsr.org</a><span> </span>[mailto:<a href="mailto:governance@lists.cpsr.org" target="_blank">governance@lists.cpsr.org</a>]<span> </span><b>On Behalf Of<span> </span></b>Milton L Mueller<br>
<b>Sent:</b><span> </span>Friday, July 08, 2011 9:10 AM<br><b>To:</b><span> </span><a href="mailto:governance@lists.cpsr.org" style="color:blue;text-decoration:underline" target="_blank">governance@lists.cpsr.org</a>; 'McTim'; parminder<br>
<b>Subject:</b><span> </span>RE: [governance] FW: TP: city government exercising policy on Google Applications / consumer rights / Consumer Protection Act / trial period<br><br></font></div><div><div style="margin-top:0in;margin-right:0in;margin-bottom:0pt;margin-left:0in;font-family:'Times New Roman', serif;font-size:12pt">
<span style="font-family:Calibri, sans-serif;color:rgb(31, 73, 125);font-size:11pt">Good god, let’s hope not.<u></u><u></u></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:0pt;margin-left:0in;font-family:'Times New Roman', serif;font-size:12pt">
<span style="font-family:Calibri, sans-serif;color:rgb(31, 73, 125);font-size:11pt"><u></u> <u></u></span></div><div style="border-bottom-width:medium;border-bottom-style:none;border-bottom-color:initial;border-left-color:blue;border-left-width:1.5pt;border-left-style:solid;padding-bottom:0in;padding-left:4pt;padding-right:0in;border-top-width:medium;border-top-style:none;border-top-color:initial;border-right-width:medium;border-right-style:none;border-right-color:initial;padding-top:0in">
<div><div><div><pre style="margin-top:0in;margin-right:0in;margin-bottom:0pt;margin-left:0in;font-family:'Courier New';font-size:10pt">Do municipal statutes have jurisdiction over non-local global<u></u><u></u></pre>
<pre style="margin-top:0in;margin-right:0in;margin-bottom:0pt;margin-left:0in;font-family:'Courier New';font-size:10pt">corporations with only a virtual presence/assets locally i.e. can a<u></u><u></u></pre><pre style="margin-top:0in;margin-right:0in;margin-bottom:0pt;margin-left:0in;font-family:'Courier New';font-size:10pt">
municipal tax apply to virtually supplied electronic apps for example?<u></u><u></u></pre></div></div></div></div></div></blockquote></div></div>____________________________________________________________<div class="im">
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<br></blockquote></div><br><br clear="all"><br>-- <br><div>Sala</div><div> </div><div>"Stillness in the midst of the noise".</div><br>
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