FT: Out of the door: Tax treatment tempts businesses to move country
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Started by: zoobabzoobab
Date: 12 May 2008 07:36
Number of posts: 1
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Summary:
As multinationals become more skillful at managing their intellectual property, there are tax as well as commercial advantages. By holding brands and patents in low-tax countries and charging other subsidiaries for their use, profits are lowered in high-tax countries. Unsurprisingly, these shifts of intellectual capital are unpopular with many tax authorities. Two years ago, Mark Everson, former commissioner of the US Internal Revenue Service, warned that the increasing transfer of intangibles was a “high-risk compliance concern”, adding: “Taxpayers, especially in the high technology and pharmaceutical industries, are shifting profits offshore.”
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