How scary it is to live: Should we believe apocalyptic predictions?
Danish investment bank Saxo Bank published the traditional "shocking forecasts" for the year 2021 - in total the list included 10 events, the probability of which, according to analysts of the company, the world is mistakenly assessed as negligible.
One of the supposed events was the tax collapse of Amazon. Saxo Bank is confident that the flight of large companies, especially the leading IT giants, to more comfortable tax jurisdictions will continue. As an example, they cite Amazon, which may decide to move its European headquarters to Cyprus, and its lobbyists will "help" the government to rewrite the tax laws in the way that would be beneficial to Amazon.
Saxo Bank believes that such behavior on the part of the IT-giants will cause serious dissatisfaction on the part of European regulators and they will quickly make Cyprus to bring its tax legislation in line with pan-European standards. Of course, this will hit the income of notional Amazon, and as a consequence - on the quotations of its securities. Therefore, Saxo Bank recommends selling shares of the IT-giants.
In a conversation with "Izvestia" Yulia Pavlova, senior tax adviser at the law firm Tax Compliance, said that in the current economic situation there should be no question of "punishment" for tax residency, but just the opposite - as any tightening of tax policy would inevitably lead to capital outflow from the economy. Therefore, countries that expect a rapid recovery in the post-crisis period, on the contrary, should attract investors by softening the tax policy.
"Tax policy, in general, should be fair, the tax burden should be distributed depending on the received economic benefits. However, during the economic crisis, it is not impossible to create more attractive tax conditions for those sectors of the economy that can attract foreign capital," said Yulia Pavlova.
You can view the full article in Izvestiya.