According to News of Iceland, Iceland has been criticised in the past for selling it’s electricity cheap and has even been accused, up until recently, of being secretive about the price large international aluminium smelters like Alcoa are paying for power.
It’s not just Alcoa that’s not paying taxes, according to the news website. Nordural is another offender and it’s all to do with a complicated structure of ownership and how much the Iceland-based businesses owe their sister companies in other parts of the world. Once the money owed has been deducted, hey presto, their profits are reduced and they don’t have to pay any corporate tax.
Nordural, says News of Iceland, has been operating in Iceland for 16 years, but has only paid corporation there for three years.
Situations like this do exist elsewhere in the world. In the UK recently, it was revealed that Starbuck’s, Google and Amazon have all paid little or no corporation tax.