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#tax#revenue#taxes#money#palantir#should#company#pay#paid#income

Discussion (68 Comments)Read Original on HackerNews

rimbo789about 2 hours ago
The existence of Palantir is a significant public policy failure. It is a tool for corrupt actors - both private and public - to maximize how much they steal from all of us. Their use of existing tax policy is just an example.

Palantir should be shut down tomorrow; the data it’s collected deleted, its IP destroyed and its executives jailed.

freakynitabout 3 hours ago
In case anyone is interested in knowing the "how" part, read this: https://palantir-uk-tax-evasion.pagey.site/
helsinkiandrewabout 3 hours ago
It's mentioned in the article:

> contracts with customers were signed with Palantir’s US companies, which in turn paid a service fee to local country subsidiaries to deliver the work.

Similar trick are used by many companies, for example Starbucks UK conveniently paid £40m in "royalty and license fees" to the parent company resulting in a £35m loss in the UK.

https://www.theguardian.com/business/2025/apr/15/starbuckss-...

throwaw12about 2 hours ago
I would have enforced different laws if necessary for such companies to tax them properly, because they are getting rich using my populations money, they should contribute back accordingly.

If you threaten to leave the UK, sure go ahead, your market will be filled quickly. Same for Palantir.

bkoabout 3 hours ago
This seems entirely reasonable. Suppose you're a company and you lost $100m over the last few years, so naturally you have a sizable tax deduction from future earnings. Even if you're profitable now, over the life of your business you've lost money so it makes sense you don't pay taxes until you make back that $100m you lost.

If you begin selling in a different tax jurisdiction, that would be unfair that you have to start paying corporate taxes despite being unprofitable. It's not a brand new company and you're using the resources you built in the other country so royalty and licensing fee make sense. In other words, Starbucks brand name and operational efficiencies are assets that were developed in the US, so the US subsidiary should receive revenue from the service to the UK branch

Nursieabout 3 hours ago
In a convenient amount that somehow just always exceeds the profits it makes, in perpetuity?

Pull the other one mate, it's got bells on.

sevenzeroabout 3 hours ago
>so it makes sense you don't pay taxes until you make back that $100m you lost

LOL. You losing money with your business is no excuse to not pay taxes on profits you make after losing money. Just because you lost money doesn't mean you dont make profits until you earned back that money. Taxes should be paid every time you make money in the country your business operates in. Simple as that. Everybody benefits off of tax money.

Havocabout 2 hours ago
Delivering work is a bit more defensible that the IP based transfers that big tech loves so much
Nursieabout 3 hours ago
There's a coal mine here in Australia (NT I think) run by a company called Adani. When it was being proposed they did the usual "but think of all the taxes!" song and dance to get it approved.

It's never posted a profit despite about a billion in annual revenue, and so never paid a penny of corp tax.

Personally I think the tax authorities ought to take the line that a company posting losses like this is clearly not a viable, ongoing concern and ought to be wound up.

If Starbucks UK is a loss-making venture, they should have some explaining to do when they're opening new branches.

perpetuallunchabout 2 hours ago
Carmichael coal mine in Queensland.

Queensland has a payroll tax, I don’t believe this is can be offset against losses, see here for more info https://qro.qld.gov.au/payroll-tax/

GST is payable on goods they use and services they consume.

Mineral royalties are in Queensland https://qro.qld.gov.au/royalty/calculate-mineral/rates/

Employees of said company are required to pay income tax on their earnings.

So while it may be completely factual that a resource extraction company paid no tax on its corporate profits, it is not factually complete as there is tax revenue generated by the operation of the company.

A company that manages to generate no taxable profit isn’t necessarily committing tax evasion, that’s a crime. It is most likely practicing tax avoidance, which any economically rational actor ought to do.

Note, I’m not making a value judgement here.

There’s plenty of good arguments to be made that Australia’s taxation system is in need of reform, and many that I’m in favour but are beyond the scope of this discussion.

bkoabout 2 hours ago
> Personally I think the tax authorities ought to take the line that a company posting serial losses like this is clearly not a viable, ongoing concern and ought to be wound up.

Tax authorities don't need to do this. Investors will. Where will the money come from? If there's no future prospects, it will cease operations.

> If Starbucks UK is a loss-making venture, they should have some explaining to do when they're opening new branches.

I like how discussion of taxes turned everyone into a fierce defender of profit maximization. Nothing about adding back to the community, paying decent wages, etc.

Swenrekcahabout 2 hours ago
The worst part is that local competitors can’t use structuring like this to evade/avoid taxes, so eventually they go out of business.
iamacyborgabout 3 hours ago
Hard to look past the claude slop design
freakynitabout 3 hours ago
I use claude designed markdown renderer. This site is using the same.

Others, for example using the same renderer:

1. NPM Supply Chain Attack Techniques: https://npm-supply-chain-attack-techniques.pagey.site/

2. NPM Ecosystem Threat Report: https://npm-supply-chain-attacks-25-26.pagey.site/

AI generated "slop" is here, and it's here to stay. In case you do find some error in content, point that out please.

iamacyborgabout 2 hours ago
The content generally reads like Claude slop. Lots of self-narration, throat clearing sentences, overuse of verbs like “lands”, overuse of tidy sentence conclusions.

It’s all fixable with a modicum of effort but combined with the slop styling I’m not sure what you’re trying to achieve other than just pushing slop online.

smashahabout 3 hours ago
Is it? Looks perfectly legible. Do people expect their forest-ignoring tree-nitpicking validated nowadays?
iamacyborgabout 3 hours ago
If the website looks like slop, why would anyone believe the content in it to be anything but slop too?
tjpnzabout 2 hours ago
How to opt-out of sharing your NHS health records with Palantir:

https://www.nhs.uk/using-the-nhs/about-the-nhs/opt-out-of-sh...

Cider9986about 3 hours ago
Seems like Palantir and the UK are a great match for each other.
gyanchawdharyabout 2 hours ago
yeah .. my country gets advanced software, better public sector capabilities, jobs, and investment ... and PLTR gets revenue which it taxmaxxes like any normal company does .. such scandalous, such rage wow's
DC-3about 2 hours ago
> taxmaxxes

funny way to spell 'steals from the public purse'

gyanchawdharyabout 2 hours ago
yeah, no.
hn6l4bg2fwabout 3 hours ago
Counterpoint: it's not always that simple
dosingaabout 3 hours ago
this is probably an unpopular opinion, but isn't this working as intended:

  * Palantir started in the US as a start up and burned a lot of money building the systems they are running today and that are finally profitable
  * Those systems are used from the UK subsidiary but if a different consultancy would use them, they would be billed accordingly. That's transfer pricing

The article says as much. Before Palantir has to pay taxes in the US, they first work through previous losses which to a large extent are stock options for their employees. Early employees took a risk working there, it paid off, that gets deducted from the profits. Same for other early spending.
helsinkiandrewabout 3 hours ago
There's some of that, but a large part of the "Palantir magic" is the on-premises services - integration, customisation, training & support. There's almost 1000 UK employees that got paid 40% of revenue.
reticulatesabout 3 hours ago
If they want the tax benefits of a different consultancy using their systems then they can sell their systems to other consultancies. Obviously there is an advantage to operating in the U.K. otherwise they wouldn’t do it so obviously they should pay taxes on their income earned in the U.K from their U.K. operations.
tremonabout 3 hours ago
It's working as designed, not working as intended.
embedding-shapeabout 3 hours ago
> this is probably an unpopular opinion, but isn't this working as intended:

Not sure how trustworthy it is, but assuming what https://palantir-uk-tax-evasion.pagey.site/ writes is true, then:

> a profit-allocation structure that lets most UK revenue/profit be recorded with the US parent instead of the UK subsidiary [...] Both only work because of a third factor: the US isn't taxing it either, so shifting profit "back" to the US isn't costly.

Seems a bit weird, they're not getting properly taxed anywhere in the world apparently. If they were properly taxed in the UK OR the US, things would have been different. But as noted, nothing here is illegal seemingly, just not good for anyone except Palantir.

BrandoElFollitoabout 3 hours ago
I seriously do not understand why companies pay taxes on the income and not the revenue. (EDIT: I mixed them up)

I pay on the revenue. I also buy things. I also consume. And somehow I can manage with taxes on the revenue.

This would also solve the problem of companies that get 10 M€ in revenue, but somehow only 10€ is taxed because expenditure, capex etc

bluecalm8 minutes ago
Revenue based taxes are a an idea to consider as they have many advantages - a big one is that they are harder to evade. One disadvantage of them is that they give advantage to big players that own the whole supply chain. Imagine you are a small player and need a supplier who needs a supplier who needs a supplier. Suddenly the tax is paid 4 times while your competitor who owns the whole supply chain pays once.

Imo when you start thinking about it the most reasonable position is that corporate income tax should be 0. Instead we should focus on consumption taxes, land taxes and taxing other resources and especially pollution.

Poogeabout 2 hours ago
I got curious while reading and I've read this[1]:

> Revenue is total money from core business activities before expenses are deducted.

> Income, or net income, is earnings remaining after all expenses are deducted from revenue.

Sorry for being pedantic. I don't understand why English has such ambiguous terms for something that shouldn't be. Or am I even more confused now?

To directly answer your comment: I agree that companies should be taxed on revenue and not income. Citizens are taxed on revenue, so why aren't companies?! They're supposed to be treated as people.

[1]: https://www.investopedia.com/ask/answers/122214/what-differe...

peytonabout 2 hours ago
Producers produce up to the point marginal benefit equals marginal cost. Tax on revenue inflates marginal cost and would create shortages etc.
BrandoElFollitoabout 2 hours ago
Sorry, I mixed them up (I am not a native speaker of English, but would have probably mixed them up in French as well :)). Thanks (I updated my post)
Okxabout 2 hours ago
Taxing companies on revenue would completely wipe out low-margin businesses like supermarkets, and create massive distortions in the economy where one company being vertically integrated and owning everything being practically the only option, as otherwise goods passed between businesses means tax is paid on the revenue twice.

It would kill the economy overnight.

Poogeabout 1 hour ago
Then let's have a similar system for citizens.
BrandoElFollitoabout 2 hours ago
Why? If the low revenue busyness is taxed at 1% and the mega one at 30% (just examples).

Taxing on the income also means that you can offload taxes elsewhere easily

drdecabout 2 hours ago
Some companies run at an extremely narrow margin. For example the margin for grocery stores is reportedly 1%. If you changed the tax system to tax gross revenues, now those stores would need to dramatically raise prices to accommodate.

It's not an easy problem.

BrandoElFollitoabout 2 hours ago
It all depends on the tax level. If today they are texted at, say, 20%, this could be a 5% on gross revenue (or whatever), and indexed on the revenue (like for humans).

I also run on narrow margins, and nobody cares.

drdecabout 2 hours ago
I am saying there are unintended consequences to such changes. If all the grocery stores all at once raised prices 5%, your margins might turn negative. And most of your neighbors.
chr1about 3 hours ago
Tax system and government budget in general are very deliberate system of smoke and mirrors designed to obfuscate how the money is spent. You are paying income tax, but your employee is paying payroll tax for you, is buying health insurance to avoid tax that would have to pay if that money was given to you. You are paying part of corporate tax indirectly, paying various tariffs sales taxes etc.

There should be only property tax and income tax, and the person paying the tax should be able to choose how to spend that money. Maybe you don't care and will let your congressmen to handle it, but maybe you would change your money to go to NASA or and then the government won't be able to spend so much on a pointless war or on building a stadium.

Okxabout 2 hours ago
Unfortunately if your employer pays for private health insurance, HMRC says that is a taxable benefit and you still pay tax. The more insidious part is how the government makes employers pay a hidden 15% national insurance tax that needs to be paid on top of the tax on your salary.