The above is a (very) simplistic example of how Corporations avoid Tax by manipulating transfer prices. Obviously the subject is very complex but the basic rule that it pays to make your money where the taxes are lowest applies to them all. This includes putting offices in lower tax jurisdictions - often quite nominally. Look at the brass plates outside buildings in Bermuda or the Channel Islands (etc.) !
To tackle this requires international cooperation. In my fictional example the UK would need an agreement with the Harrovian Government to change what happens. Why would the latter do this? It's in their interests to keep me in their country. And why would I voluntarily change my modus operandi and voluntarily pay tax I don't have to? What I do is legal. Period!
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