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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (612916)	5/25/2011 1:50:46 PM
From: i-node	Respond to of 1583707

>> Might that be called a "loophole"? No, I don't believe so. It is simply a fact that in a global economy you're going to have subsidiaries under common control operating in different taxing jurisdictions. To a parent company, debt is debt -- it doesn't matter which subsidiary owes it to which because those intercompany debts are eliminated at consolidation time. It would be totally stupid to suggest that government should get involved in telling the parent corporation which subsidiary can borrow money from which other subsidiary. If loans are properly collateralized and bear an appropriate rate of interest, how who is Congress to say they aren't ordinary, arms-length transactions? Are we going to seal our borders to lending transactions from outside the country? If we do that, I envision some pretty serious side effects. As I was trying to convey, these transactions are highly nuanced and you can't just tell them they have to stop. >> So the government trying to collect taxes due is increased complexity and disruption of the "arrangements" between cheating parties.... To be clear, I've not heard of any corporations who were "cheating". These are the rules Congress and the courts have established -- often, decades ago.