Blackrock: This is how you save taxes on a large scale by shifting profits

The thing is simple: if I only want to pay very little or no tax at all, I am not allowed to earn anything or just a little. Or I do it like thousands of companies and some privatiers worldwide: I only earn something in countries that require very little taxes. Like Blackrock, for example, the world’s largest investment manager in whose services Friedrich Merz has already stood.

How does that work? In essence, just as simple. I found a sales company A in Germany. It sells my goods or services. From the flowerpot to an X other article. My effort for this is not huge, so my profit already. I would have to pay taxes on them. Cheap that there is still an administrative company B. It belongs to my business idea. Just the idea. And for example, it is in Ireland. Or Luxembourg. Renowned, serious, EU. However, company gains are taxed lower there than in this country. Now company B is busy writing invoices to my shop A. and of course I pay them. The employee of house B could definitely write these bills in the home office. Nachtigall, I hear … for example for advice. Or use of licenses, my idea, software or anything. The main thing is pure ideas, with almost zero effort.

And Schwups: My beautiful company A in Germany makes no more significant profit here in Germany. Ergo no significant taxes for the German state. The Batzen is in an account of company B. This is called “relocation”, has been running for decades, is described in accordance with manuals – and is basically legal. But unfair. Because of course my A business benefits from the good market conditions in Germany. And companies like Blackrock benefit from at least trained specialists such as Friedrich Merz.

Now Mr. Merz, now Chancellor, could do three things to cod: First, tax my A sales directly, at the source without counter-calculation of effort, as the experts call this. Minister of Culture Wolfram Weimer seems to have something in mind for the US Tech Groups-an economically justifiable special case. Secondly, the Chancellor could – secondly – reduce the profit taxes for companies so much so that relocation to company B is no longer worthwhile. He wants to do that a bit, but only if the companies invest in Germany. Which doesn’t sound stupid. Because the third thing, an international minimum taxation of company profits, was always tried politically. However, I no longer believe in their effectiveness. Because if taxes in Ireland or Luxembourg were still too high for me, I could move company B, for example, to the US state of Delaware. You pay below ten percent. Very popular.

Peer Steinbrück, ex-SPD finance minister, is attributed to the bon mot that tax savings operations in Germany are more pronounced than the sex drive. I publicly explain here: not with me. And I would somehow be shabby not to adequately participate in the financing of the common good as an entrepreneur in this country. Which of course cannot be an effect on the balance sheet for managers of multinational corporations with a view to their shareholders. It’s all about one thing: return aximation. I basically don’t think bad, and personally not bad for myself. But not much value without a functioning community.