“So the Sunday papers tell us, adding to the stream of stories about how Starbucks ain’t payin’ enough tax, Google ain’t, Apple isn’t and… well, we’re being taken to the cleaners as a nation, aren’t we? We provide this lovely country for them to do business in and we don’t get a modest cut of the profits from the bastards,” Tim Worstall writes for The Register.

“The only problem with this narrative is that it’s entirely false: indeed, we’re being fed this nonsense by those who may have no clue at all about how taxation works – with, if I’m allowed my own little bit of prejudice, a decent assist from a pressure group,” Worstall writes. “I think we’ve all read enough of these newspaper pieces to know what the accusations are.”

“Various tech companies sell into the UK from outside the UK. They book their revenue outside the UK, make their profits outside and thus no money is levied to pay for essentials like diversity advisers and duck houses inside the UK,” Worstall writes. “We are then told that this is tax avoidance and that they’re all very naughty boys. Apple sells the iTunes stuff in from Luxembourg, eBay channels PayPal from there, Facebook and Google both sell in their adverts from Ireland and so on.”

Advertisement: Free Shipping On Orders Over $25 & up to 60 lbs at MacMall.com

Worstall writes, “However, this is not tax avoidance (and it’s most certainly not tax evasion, the illegal stuff). It is in fact tax compliance, this is exactly what the EU wants… To allow, indeed tempt, corporations to shift stuff around so as to reduce their corporation tax bills. This, in turn, forces governments to keep their corporation tax rates low: for it’s a very bad tax, d’ye see?”

Read more in the full article here.

Related articles:
So how much did Apple really pay in taxes? – November 1, 2012
Apple’s showdown with the U.S. government over taxes on offshore cash – July 13, 2012
Apple‘s $74 billion tops list of U.S. tech companies’ overseas cash – July 9, 2012
Apple’s dividend move puts spotlight on foreign cash holdings, repatriation tax reform – March 20, 2012
Apple: Good start; and what about the overseas cash? – March 19, 2012
Apple’s foreign cash hoard piles up: $54 billion and rapidly growing – January 11, 2012
Senator John McCain eyes Apple’s $54 billion overseas cash pile – November 3, 2011
Google joins Apple in push for U.S. repatriation tax holiday – October 3, 2011
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
U.S Senate Democrat Schumer allies with Apple, other multinationals on repatriation tax talks – June 21, 2011
U.S. companies push for tax break on foreign cash – June 20, 2011
Apple, Oracle, Duke Energy, others organize lobbying blitz for tax holiday – February 17, 2011