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MARCH 2017
Live Nation taxes Manfred Tari mt@vip-booking.com A worthwhile lesson on how to pay less
one submitted to the SEC with 106 pages,
work well enough. Many SME’s will mostly
than one percent income tax.
apparently containing much more detailed
work nationally and will not have permanent
information.
establishments or subsidiaries abroad, but undertake foreign work from their national
The facts upfront: In 2016 in the US Live Nation paid on a federal level $ 500.000,
But in a time where investigative media
base. Then only domestic taxation applies
on a state level $5.4 million (Delaware) and
reports reveals scandals such as the Panama
and the result is reasonable. But income/
abroad $29.2 million on income tax, when
Papers or Lux Leaks the question of tax
corporate taxation is not a matter of the EU,
reaching for the first time a revenue result
avoidance reaches
new levels of public
but has remained with EU Member States,
of $8.35 billion as filed in the annual report
awareness. In fact Live Nation did not
while outside the EU every state has its own
for the SEC (US Security and Exchange
hide any of those figures in its report for
tax rules anyhow, which means that very
Commission)
the SEC, but paying income tax of just not
often tax rules do not fit and double or
more than $500.000 in the US on federal
excessive taxation can easily happen, which
Additionally the company declares in its
level and on a state level $5.4 million in the
that is not fair.
regular report: “The amount of earnings at
tax heaven of Delaware when gaining at
December 31, 2016 that has been earned
the same time a turnover of $8.35 billion
To take away these obstacles, international
over time, and permanently reinvested,
raises the question regarding the imbalance
companies often set up structures to bring
was approximately $1.4 billion. It is not
of taxation for corporates and the one for
down the double/excessive taxation. This is
practical to determine the amount of
smaller and medium sized companies.
often considered as tax avoidance, but is in
federal and state income taxes, if any, that
practice bringing down the tax burden to a
might become due in the event that any
more reasonable level.
remaining available cash associated with VIP-News: Over the years you have
these earnings were distributed.”
taken part in several high level meetings Since the spin off by Live Nation from
or hearings with officials concerning
Clear Channel Communication the editor
taxation issues. How meaningful is
of the VIP-News section “Business News -
the political impact on the potential
Music In Shares” reports continuously on
outcome
losses and debts as filed by Live Nation in
resulting from such consultations?
the
decision
finding
its regular reports. However, the magic
This question becomes even more relevant
of accounting and figures in business
due to the reported overall earnings of $1.4
DM: The meetings about taxation at EU level
reports by corporate companies can be
billion by Live Nation, wherever they might
have been disappointing, unfortunately,
mind-boggling. Especially the 2016 annual
be located. Deeply impressed regarding the
which has to do with the very limited
report caused some extra research efforts
advantages on the taxation of the likes such
power that the EU has regarding income/
to identify where the company allocated
as Live Nation, VIP-News spoke with Dr.
corporate taxation. My membership of the
the loss of $0.23 per share when actually
Dick Molenaar from All Arts Tax Advisers in
Expert Group for taxation of cross-border
reporting a net profit of $2.9 million and
the Netherlands.
individuals has been very positive in the final report, but already in advance I expected
revenue of $8.35 billion. VIP-News:
tax
that not much would be done with this
In 2016 the loss was located in the section
systems in the world of enterprises and
report. The EU tax court cases, in which Dr.
“Accretion of redeemable non controlling
businesses? Do you believe that SMEs
Harald Grams has forced decisions (Gerritse
interests”
and corporate companies are dealt
and Scorpio), have been more successful.
with in an even manner?
This is different in regard to meetings about
and
declared
with
$49.95
million, resulting out businesses of which
How
fair
are
our
VAT and social security in the EU, because
Live Nation holds less than 50 per cent.
10
or
These figures can be found in the regular
DM: Not so fair, because taxation of cross-
these are matters of the Union and therefore
business report with 13 pages or in the
border services and ownership does not
officials are willing to act on them.