this post was submitted on 20 Oct 2024
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Explain Like I'm Five
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This. Why is this system not exploitable by us? What do we need ti make this work for us? Also: if the system is known, why is nothing done about it?
The system is created by the people who use it.
It’s not that easy to do something about it. Generally you’re taxed in the country where you earn money, but corporations have options in where they count income and where they count losses, to most benefit them.
A regular person in the US can’t do this because their employer reports salary income to the IRS as US income. What income do you have that you can claim was earned in a low tax country? Have you done all the legal work and paid appropriate taxes in that country?
Sometimes you’ll read about repatriating money. How do you legally use that money you have in a low tax country without incurring taxes bringing it back to wherever you are?
Simple. It's purely by design.