[governance] Re: Telecom TV on Google and Taxes

[McTim]

On Thu, Dec 13, 2012 at 7:41 AM, parminder <parminder at itforchange.net> wrote:
>
> Dear Carlos
>
> I agree that any position that IGC takes should follow an informed
> discussion. I will try to contribute to it.
>
> A few points. (below)
>
>
> On Thursday 13 December 2012 05:24 PM, Carlos A. Afonso wrote:
>
> Dear Parm, unfortunately (again) I am unable to follow up closely on the
> thread. But one point intrigues me: taxes are determined by governments
> within their geopolitical boundaries. Why don't governments charge
> appropriate taxes (if any) on services such as Google's?
>
>
> Governments have general tax laws and structures and obviously not specific
> to a company. The problem is that google builds a complex web of operations
> and entities to make their tax liabilities move to some tax havens (in this
> case, Bermuda). While non networked-digital businesses also do such things,
> it is so much easier for networked-digital businesses like google because
> the transactions themselves take place in the cyberspace.

You have zero basis in fact for making this assertion.

I make transactions in cyberspace, my local hardware store makes
transactions in cyberspace,
Google does the same.  How is it easier for Google?  Do they have some
special Internet banking "pipe" that we don't have?


>
> Such a situation requires (1) national laws to be reformed to deal with the
> new situation, (2) international taxation treaties, and norms (model tax
> codes like OECD has) which can harmonise tax laws enough to enable countries
> to collect their tax dues and disable, or reduce, illegitimate tax haven
> systems. Point (2) becomes even more important, and perhaps central, in a
> globally distributed businesses like that of google which are conducted in
> cyberspace.


Then do 1 and 2, but don't criticize companies for doing things that are legal!


-- 
Cheers,

McTim
"A name indicates what we seek. An address indicates where it is. A
route indicates how we get there."  Jon Postel

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