"You may be aware that Apple was recently 'invited' to appear before a Senate Sub-Committee to discuss why Apple wasn't paying more in US taxes." Now that he has our attention Jim Hamm goes on to discuss this interesting problem.
"Well, if you have an interest in — or even care — about learning more on how the various tax havens around the world operate, take a look at this 53-minute video. Now, I realize this may be way more time than you want to spend learning about something you can't do anything about. Keep in mind, though, the taxes these companies don't pay are, in effect, collected from those that do pay - thee and me.
"Many big-name companies are discussed in the video, and the techniques used to avoid/minimize taxes are very creative, to say the least. Some examples: Starbucks has many coffee shops open in England, has operated there for 15 years, put many mom and pop coffee shops (who were paying taxes) out of business, hasn't made a profit in 15 years, and hasn't paid any taxes in England. They were called to a government committee to explain this. Well, all the trademarks for Starbucks are registered in the Netherlands (where a low tax rate has been negotiated) and the Starbucks shops in England pay a royalty fee to Starbucks in the Netherlands to use these trademarks. Coincidentally, no profit in England for Starbucks to pay taxes on."
Here Jim gives another example, " . . . companies set up plants in Nairobi, Kenya to build a product. As an incentive the government gives the company a 10-year tax holiday. No taxes for 10 years. At the end of 10 years the company closes down and moves elsewhere.
So, how does this conclude? Jim declares, "I had to chuckle at a comment by the narrator at the end of the video: this video on tax-free havens has been brought to you by those that do pay taxes...(grin)."