It looks like it boils down to the fact that in the UK companies are allowed to make tax-free 'royalty' and 'interest' payments to their offshore parents, resulting in tax avoidance. Surely there is a simple solution: treat all such payments as simple transfers rather than expenses. I'm not allowed to avoid tax by siphoning half my pre-tax income into a swiss bank account, so why should large companies be allowed to do this?
It looks like it boils down to the fact that in the UK companies are allowed to make tax-free 'royalty' and 'interest' payments to their offshore parents, resulting in tax avoidance. Surely there is a simple solution: treat all such payments as simple transfers rather than expenses. I'm not allowed to avoid tax by siphoning half my pre-tax income into a swiss bank account, so why should large companies be allowed to do this?