I don’t want to talk for Jerry but I don’t think that was the point he was making, more so that tax evasion listed pales in to insignificance when compared to the legal routes of avoidance on an industrial scale deployed by massive multi-national companies (and not meant in a way to excuse the former).
More a question of ethics.
Absolutely.
The amounts in that list are peanuts compared to the tax amounts avoided by some corporates.
And "
clamping down on (that) evasion" will do little to fund an NHS costing £ 145 billion p.a.
Some classics:
-
Amazon booking customer purchases through Luxembourg (
check some of your receipts)
Despite the goods being in a UK warehouse, handled by UK staff etc (almost zero going near Luxembourg)
-
Starbucks reporting minimal profit in UK and RoI...yet still thinking it worth adding to their 1000s of outlets
...because Starbucks Grand Cayman (or wherever it is) charges Starbucks UK/RoI a Royalty for using the logo - and a commission on badged supplies.
- Large
Care Home Corporations based in G.C. (or wherever) charging (e.g.) 8% interest on loans to their UK Homes, i.e. transferring profits.
-
BMW selling its cars to a Luxembourg subsidiary at near cost - so minimal profit inside Germany. BMW Lux, selling to the Sole Importers of each other country.
There
is a solution to this.
Look at the worldwide profits reported to shareholders - then allocate those profits to each country in proportion to that country's volume.
But of course the Corporates say:
"It isn't as simple as that. The costs in each country are different - as well as the treatment of those costs for tax."
Which is why scores Countries have signed up to implement "
Country By Country Reporting", as set out by the OECD.
This should highlight inter-country transfer pricing (and therefore potential profit shifting).
OECD - Tax
I hope the above shows how one can be a supporter of Free Market Capitalism...
....while recognising that prior Rules that lead to unfairness need to change.