PPRuNe Forums - View Single Post - IAG: BA restructuring may cost 12,000 jobs
Old 30th Apr 2020, 14:32
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WHBM
 
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Originally Posted by WhatTheDeuce
BA plc still operates and pays tax in the UK
Yes. But in the Starbucks/Virgin Atlantic etc method of corporate finance, multi-national groups invoice between their subsidiaries from one country to another to drain all the profit margin (which is what you tax) off from the major high tax jurisdictions (which is generally where most of the worthwhile turnover is) into one of the group companies which runs in a country with minimal tax.

It's not even as if the funds are then returned to any "investors". BA/IAG have not done any share issue for yonks, the vast majority of their shares that were sold to real investors to raise capital have been traded, and traded again, in what is effectively a professional form of gambling. Shareholders, yes, but investors, no.
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