Is eBay avoiding tax? (In which I endeavour to improve on a post by Mr Tim Worstall)

On Monday I discussed how I think most of the real debate about corporate tax scandals is about people’s normative interpretations of the tax system, not the technicalities of the particular structures. Then I read this:

Another day, another report of an internet company avoiding taxes in the UK. This time it’s eBay, to follow the earlier stories about Facebook, Google, Apple and so on. What’s really rather sad about these stories is that they ignore the very structure of the law. This isn’t an aberration, some corporation bending the rules to dodge taxes. This is the very point and purpose of the legal structure around taxation itself.

Here’s the thing. Based on his tone, I really want to disagree with this article by Tim Worstall…but he seems to have reached the right conclusion, all be it for possibly the wrong reasons.

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