Looks like Steam is dodging their tax responsibilities

I posted this in the official Steam forums and it was immediately taken down, so I'm sharing it elsewhere. Because where there's smoke...

A few days ago the news came out that many giant corporations have found a new way to dodge their tax responsibilities by securing cushy registrations in Luxembourg. See this article for details.

Pepsi, IKEA, FedEx and 340 other international companies have secured secret deals from Luxembourg, allowing many of them to slash their global tax bills while maintaining little presence in the tiny European duchy, leaked documents show.

These companies appear to have channeled hundreds of billions of dollars through Luxembourg and saved billions of dollars in taxes, according to a review of nearly 28,000 pages of confidential documents conducted by the International Consortium of Investigative Journalists and a team of more than 80 journalists from 26 countries.

Big companies can book big tax savings by creating complicated accounting and legal structures that move profits to low-tax Luxembourg from higher-tax countries where they’re headquartered or do lots of business. In some instances, the leaked records indicate, companies have enjoyed effective tax rates of less than 1 percent on the profits they’ve shuffled into Luxembourg.

Now go check your latest VISA bill for your last payment to Steam. Mine reads "http://WWW.STEAMPOWERED.COM LUXEMBOURG". Yup, it appears they're also in on it. Rather shameful.

I call shenanigans. Nowhere in the article does it mention Valve, nor does the website the article links to when it was talking about FedEx mentions them. Second, I bought stuff form Steam as recent as yesterday. It sure as hell doesn't have Luxembourg in the line. Please, if you're going to make an accusation like this, source the exact spot where it mentions the accused. Trying to get us to read an article that doesn't mention Valve and making us go through hoops through the article's links is pretty bogus on your part.

This doesn't make me look down on companies that do this. They are about nothing more then profits. That's how capitalism works. But what pisses me off the most and really is the major issue here is our failing government systems. The United states is in shambles in every one of it's organizations except the ones that have nothing to do with helping or taking care of the people the serve. Businesses are people according to congress. Hell even here in Canada shits gotten to the point where, I have a hard time caring as it's just to much.

For example we house the third largest clothing company in the world. But since we have some law about getting tax breaks and incentives when making subsidiary or branch companies in other countries they payed 0 taxes a couple of year ago. But here is the kicker. They payed no taxes and got back from the federal government close to 4 million. And people wonder why Canadian citizens have to pay some of the highest taxes in the world. It's because our big business pays jack fucking shit, leaving the bill for the lower and middle class to pick up and deal with.

But in the end these companies aren't doing anything wrong. They have followed the law set in place by the people you and others voted into office. So if you don't like this take it up with your politicians. As they are to blame.

Edit: didn't read your article.

Mine read: STEAMGAMES.COM BELLEVUE WA

That applies to EU subscribers. So you're telling me EU folks are a bunch of no good, low-life, tax frauds?

I care why? They give you super games for 75-90% off, that's all that matters.

ummm... business are people, and the people that voted politicians into offices are the aforementioned businesses. the politicians are not our politicians, they are the people's (ie businesses') politicians.

the vote of the average citizen doesn't do anything.

i agree with what you said, i just think the connection here needs to be made clear.

Also, if these companies are evading taxes thanks to Luxembourg, the US should impose sanctions on Luxembourg and/or its banks. The US just made it law that every one of its foreign citizens needs to pay taxes, regardless of whether they live inside the US or not. If the banks do not comply, the US will stop them from doing business with the US. it stands to reason that the US should impose the same law on businesses, after all... they are people.

my last steam purchase

Lux^

It would only make sense to use these loop holes as a company, blame the system instead.

Wesley Snipes went for jail for that.

@SolitaryBro: judging by your reaction you do not appear to have knowledge in business administration so I will not flame you or judge you for anything. This information in general is not that much of a "confidential thing". All major corporations implement this in order to ease their accounting structure. Of course governments and whackjobs will jump on this quickly, because the latter thinks of it as "another reason to whore for some attention and publicity", while the former is pissed that it can't get a cut of the money pie. It's how our stupid human race ticks, I suppose. Don't get pulled into this nonsense. Every major organization does this, it just has to if it the directors and managers want to manage the company without affecting it's process of operations.

If you wish to call something shameful, tell that to the financial system of the countries, they are the ones full of holes. Companies just take this opportunity to stabilize and improve their situations able to better address you as consumers.