I’ve been thinking about this recently and there’s probably a flaw to this but hear me out and I’m open to hearing why I’m wrong on this.
Basically, we have a fairly large group of countries that are annoyed by companies funneling profits to tax havens. Why won’t we ban companies that do this from operating in EU and other countries participating in anti tax haven coalition? Are some WTO or other treaties preventing this?
Because it is hard to track. For example you have say Turkish made clothes being sold into the EU. It would be extremely easy to set up a company in say Switzerland, which owns the brand rights for those clothes and makes all the money. Turkey is not part of the EU and not a tax heaven. At the same time the product is made in it and they do not have to disclose any relations of their companies.
So to do it properly, you would have to get nearly all countries in the world involved in it.
The lobbying behind the scenes must’ve been intense
