01-17-2013, 01:07 PM | #31 | |
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And has been pointed out already in this thread, Amazon is not the only ebook vendor taking advantage of tax laws. Or even the only multinational corporation. |
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01-17-2013, 01:07 PM | #32 | |
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01-17-2013, 01:08 PM | #33 | |
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By that time, I expect that the VAT rules on electronic goods (or at least, on electronic books) will have changed again. But this is, again, a governmental problem, not a company problem. |
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01-17-2013, 01:08 PM | #34 | |
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Lets say Luxembourg abide by the EU demands to raise the VAT rate on ebooks and bring it up to the minimum they can, 15%, according to what Rizla is saying, Amazon would still be acting immorally to charge 15% VAT when other companies based in the UK are charging 20% VAT. I don't see it myself. |
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01-17-2013, 01:10 PM | #35 | |
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01-17-2013, 01:11 PM | #36 | ||
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01-17-2013, 01:22 PM | #37 | |
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I do agree that if a company is running as a "shell" for the sole purpose of been run at cost or a loss in order to bolster the revenue of a company based outside the same country that needs looking into and laws changing. However, that's not what Amazon is accused of/doing is it? Last edited by JoeD; 01-17-2013 at 01:25 PM. |
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01-17-2013, 01:26 PM | #38 |
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[QUOTE=ucfgrad93;2385659]So, it is only immoral to avoid taxes on a large scale. The small amount you avoid is ok? QUOTE]
I think it is coming to this. US Prosecutors are not prosecuting HSBC because they are to big to prosecute. I have a very small business and I use every legal means available to reduce my tax burden. And before you start criticizing businesses about the amount of tax they pay look into how much over all taxes businesses do pay. Businesses have to match Social Security and Medicare deductions of their employees. They pay 100% of both federal and state unemployment taxes. They collect and pay Sales Tax. They pay taxes on their inventory, including the things not for sale like furniture and computers. If you have not sold it by the end of the year you pay a tax on it. This is why companies do not like to be caught holding a lot of merchandise at the end of the year. Then there is Corporate Taxes due by March 15Th. Your business license is a tax. It is calculated on your sales for the year combined with the type of business you are in. I love it when people complain that April 15Th is coming around again. I pay taxes every month. Apache |
01-17-2013, 01:28 PM | #39 |
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Yes, exactly that. Thanks.
The VAT change happened in January 2012. The commission decided to send "Formal Letters" in July 2012. The commission issued "reasoned opinions" in October 2012 Nothing further has happened yet. The EU is already discussing changes to VAT on ebooks, and the UK government may be facing a case in the European Court over VAT on ebooks in the middle of this year which could force the UK Government to exempt ebooks from VAT. And the EU is already considering change to VAT, and is apparently going to change the VAT rate to that of the customer's country, rather than the supplier's in 2015. I really don't expect to see any action taken against France and Luxembourg. |
01-17-2013, 01:42 PM | #40 |
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ISTR that they did take action against Spain, when they lowered the VAT rate on ebooks a couple of years ago.
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01-17-2013, 01:57 PM | #41 | |
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01-17-2013, 02:01 PM | #42 | |
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And corporations, especially publicly traded corporations, are required by law to protect their shareholders' interests, after all. It would be arguably illegal for them to not take full advantage of any tax loopholes they come across. |
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01-17-2013, 02:04 PM | #43 |
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The trick is, who decides what's a "reasonable" level of taxation? The only real answer is, the government, specifically, the legislative body that enacts tax codes. And they have quite definitively decided that what Amazon is doing now is reasonable. Neither your opinion nor mine is really relevant on that score.
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01-17-2013, 02:06 PM | #44 |
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01-17-2013, 02:11 PM | #45 | |
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Amazon is publicly traded. The law requires the people running the company to protect their shareholders' interests. Would you feel the same if you owned Amazon stock? Would you go to a shareholder meeting and raise a stink demanding that Amazon pay more in taxes than they are required to? Do you think the other shareholders (who are the owners of Amazon) would vote with you? |
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