Quote:
Originally Posted by corporatejay
How does that work for corporations?
Let's say you are incorporated in Alberta and are a publicly traded company with investors all over the world.
Your business is done Turkey and that's where you generate your revenue. Should you pay taxes in Turkey or Canada? Both? When should you pay it? When you repatriate it or when you earn it?
These are just basic questions. I mean obviously there is tax evasion and that is a problem but it's not as simple as saying "just pay your taxes where you live".
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It's an incredibly complicated system involving legislature from both countries and treaties.
How much you pay is very much dependent on the relationship between the two parties. Depending on the jurisdiction tax obligations can be based on residency, citizenship, location of income earned, etc... It's then up to a tax treaty to decide who you pay the money to.