Why is this legal?
Is there an economic rationale for this kind of game playing? I'm asking, 'cuz I don't see it.
Looks like good old fashioned tax evasion to me.
I'm sure Google - and the screaming demagogues on the right who insist that rigging the game in favor of always expanding the opportunity set for corporations in the name of global competitiveness - will claim it is legitimate tax avoidance, and not illegal tax evasion.
But without a solid economic justification, the only rationale for these kinds of transfer payments seem primarily, if not solely, designed to eliminate taxes that would otherwise be owed to the U.S.
Isn't that the very definition of tax evasion?
Inside Google's $1 Billion-a-Year Tax Cutting Strategy - BusinessWeek: - Sent using Google Toolbar"
The IRS used to frown on tax shelters, and work very hard to shut down those that didn't have some significant economic justification. Now they provide pre-approval for them?