Quote:
Originally Posted by Nathan
But for the bigger corps in this industry, they are usually setup correctly. For example, Private's Fraserside Holdings in Cyprus, owns all copyrights for their content, and licenses it out to the corps that use it. There is staff that is there and they license it at certain rates which match the rates any third party would do the same, the governments can then not really say anything against it since its just as if they would buy content from third parties.
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there's a lot more to running Private than that - what if there's 2 people on staff in Cyprus handling the licensing of content and 200 people in management, administrators, production staff, web developers and IT staff, accountants etc in Spain - i'm sure that wouldn't wash with Spain's version of the IRS.
none of the adult companies registered in Cyprus have anything more in that country than an office address and a representative that is provided by these companies that specialize in offshore corporate setups. they're incorporated there for a reason, but that doesn't mean it's legit.
the biggest companies in the world do it, setting up layer upon layer of holding companies and subsidiaries in tax haven countries all over the world. like anything else, it's only a very small % who get sued by the IRS because the government doesn't have the manpower and resources to take on all those they know are skirting the laws to evade taxes.