November 9, 2018

123. Taxing the multinationals

Multinationals have an uncanny ability to avoid tax. In this edition, Phil Dobbie and Steve Keen talk about how big corporates use transfer pricing to pay the least tax possible, and attempts to try and get them to pay the right amount. But where should the tax be applied – where products are made or where they are consumed. At the moment, it’s often somewhere in central America. Pehraps moves like the governments Digital Services Tax are a step in the right direction – or should we look at how China approaches the problem?

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