Comment by parineum
4 hours ago
I don't really understand this perspective.
What should be taxed?
Amazon, as an example, has servers in country X. Country X taxes the transaction or the income from the server company.
Amazon pays delivery drivers in country X to deliver goods, and the driver is taxed through various means (vehicle, fuel, payroll, etc).
What is Amazon doing in country X that should be taxed?
> What is Amazon doing in country X that should be taxed?
its profits within that country (income minus actual expenses)
in practice expenses are fakely inflated to transfer tax payments top jurisdiction with near-zero taxes
How can profit be calculated if a significant component of expenses is intellectual property and brand awareness which was paid for somewhere else?
Amazon can add up the costs to install and operate a datacenter or warehouse in country X, but most of the demand for services from that datacenter or warehouse will be due to expenses incurred in country Y.