The Guardian's special investigation into Luxembourg's tax arrangements with multinationals is staggering.
http://www.theguardian.com/business/2014/nov/05/-sp-luxembourg-tax-files-tax-avoidance-industrial-scale
However, for anyone who professionally advises in the field of tax driven corporate structures it will not come as any surprise.
Now this is becoming more open - governments need to 'get to grips' with it.
Broadly - from a corporate law perspective under English law, any director who does not utilise these (admittedly - arguably legal) structures to save their company's tax - is in breach of their duties (however 'morally ambiguous' that may be).
The tax distortions it creates are hugely damaging to society in that (for example) physical 'bricks and mortar' retailers on British high streets pay relatively huge amounts of tax and are driven out of business, while e-tailers pay next to no tax.
The competition is unfair, and while I am totally in agreement with competitive tax rates between states - the practices referred to are simply abuse.
With most of the world's developed economies running (generally large) budget deficits you would have thought that the politicians and their civil servants would be interested in sorting this situation out - It surely cannot be unpopular with the electorate (but I fear that I am ascribing a level of competence to them - which may be causing you to laugh long & hard?!)
Discuss? / Offline / Sometime!
Dan.Johnson@EquitableLaw.com
+44 (0) 7788 537 187 (U.K. Cellular Tel.)
