this is probably an unpopular opinion, but isn't this working as intended:
* Palantir started in the US as a start up and burned a lot of money building the systems they are running today and that are finally profitable
* Those systems are used from the UK subsidiary but if a different consultancy would use them, they would be billed accordingly. That's transfer pricing
The article says as much. Before Palantir has to pay taxes in the US, they first work through previous losses which to a large extent are stock options for their employees. Early employees took a risk working there, it paid off, that gets deducted from the profits. Same for other early spending.
> a profit-allocation structure that lets most UK revenue/profit be recorded with the US parent instead of the UK subsidiary [...] Both only work because of a third factor: the US isn't taxing it either, so shifting profit "back" to the US isn't costly.
Seems a bit weird, they're not getting properly taxed anywhere in the world apparently. If they were properly taxed in the UK OR the US, things would have been different. But as noted, nothing here is illegal seemingly, just not good for anyone except Palantir.
There's some of that, but a large part of the "Palantir magic" is the on-premises services - integration, customisation, training & support. There's almost 1000 UK employees that got paid 40% of revenue.
Tax system and government budget in general are very deliberate system of smoke and mirrors designed to obfuscate how the money is spent. You are paying income tax, but your employee is paying payroll tax for you, is buying health insurance to avoid tax that would have to pay if that money was given to you. You are paying part of corporate tax indirectly, paying various tariffs sales taxes etc.
There should be only property tax and income tax, and the person paying the tax should be able to choose how to spend that money. Maybe you don't care and will let your congressmen to handle it, but maybe you would change your money to go to NASA or and then the government won't be able to spend so much on a pointless war or on building a stadium.
The existence of Palantir is a significant public policy failure. It is a tool for corrupt actors - both private and public - to maximize how much they steal from all of us. Their use of existing tax policy is just an example.
Palantir should be shut down tomorrow; the data it’s collected deleted, its IP destroyed and its executives jailed.
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[ 0.25 ms ] story [ 33.2 ms ] threadNot sure how trustworthy it is, but assuming what https://palantir-uk-tax-evasion.pagey.site/ writes is true, then:
> a profit-allocation structure that lets most UK revenue/profit be recorded with the US parent instead of the UK subsidiary [...] Both only work because of a third factor: the US isn't taxing it either, so shifting profit "back" to the US isn't costly.
Seems a bit weird, they're not getting properly taxed anywhere in the world apparently. If they were properly taxed in the UK OR the US, things would have been different. But as noted, nothing here is illegal seemingly, just not good for anyone except Palantir.
I pay on the revenue. I also buy things. I also consume. And somehow I can manage with taxes on the revenue.
This would also solve the problem of companies that get 10 M€ in revenue, but somehow only 10€ is taxed because expenditure, capex etc
There should be only property tax and income tax, and the person paying the tax should be able to choose how to spend that money. Maybe you don't care and will let your congressmen to handle it, but maybe you would change your money to go to NASA or and then the government won't be able to spend so much on a pointless war or on building a stadium.
Palantir should be shut down tomorrow; the data it’s collected deleted, its IP destroyed and its executives jailed.
https://www.nhs.uk/using-the-nhs/about-the-nhs/opt-out-of-sh...