I'm not an accountant (about as far as could be from it) but in a discussion with an accountant friend of mine he suggested that there really is nothing that can be done about these avoidance schemes. He posited that the only real way to ensure all tax is paid for is to have no 'income tax' and then add a steep tax (30-40%) on everything that people buy. It seems like a hell of a large percentage to add on to everything, but then at least all money spent in a country would stay in the country.
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I'm not an accountant (about as far as could be from it) but in a discussion with an accountant friend of mine he suggested that there really is nothing that can be done about these avoidance schemes. He posited that the only real way to ensure all tax is paid for is to have no 'income tax' and then add a steep tax (30-40%) on everything that people buy. It seems like a hell of a large percentage to add on to everything, but then at least all money spent in a country would stay in the country.