The guardian article talks about how multinationals successfully avoid paying taxes through intra-group services.
The article actively explains the process of how multinational corporations manage to undergo such activities and the possible actions that will be imposed. However it leaves out the actual consequences it has caused.
When corporations neglect their corporate social responsibility, they show none to little initiative to take responsibility for the company’s effects on the environment and their impacts on social welfare. Corporate social responsibility also includes by definition the situation where a corporation’s efforts go beyond what is required by government regulators.
In this case corporations are not fulfilling the necessary requirements, forcing governments to govern the domestic country with less flexibility. If governments only had, half of what multinational corporations successfully manage to avoid paying through taxes, the health care, infrastructure and education would be by far more advanced.
There are two ways for economic development to occur; either taxes are paid and the government takes care of the national development or corporations step up to the plate and create shared value for their operating environment.
Luxembourg finance minister Gramegna has admitted that “corporations paying little to no taxes is not a good result”