It cannot be beyond the wit of the tax system to recognise economic reality. But it does

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Nils Pratley in the Guardian this morning:

The bigger [tax avoiding] fish are the likes of Amazon and Google, where the argument concerns where the "economic activity" happens. In the case of the former, there ought to be a commonsense answer: when the customers, most employees and the distribution centres are in the UK, the Luxembourg operation is not at the heart of the business. It cannot be beyond the tax system to recognise that fact.

Quite so. Of course it must be possible. It's very convenient for some to argue otherwise. Our job is to ignore them.


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