> Yes, they do. It's called free trade and is generally seen as very desirable, as it reduces paperwork and leads to countries competing to be better places to do business than their neighbours.
With all due respect, if you actually believe any of that, as pertains to THIS topic, you're a fucking idiot.
This isn't any idea of free trade, nor have they been reducing the paperwork- on the contrary they've been filling a whole bunch of extra paperwork.
What they've been doing is performing most or all of the work in (say) the UK and then filling the tax in Luxembourg as if all the profit was magically done there; and this is purely and simply a tax fiddle.
By running two or more different companies in different countries you can "sell" things across the borders at artificial (fake) prices so that, no profit is made in the UK, and all of it is in Luxembourg or Ireland, on paper. There's no free market for those trades, it's all between two companies, controlled by the same people.
If they actually did everything in Luxembourg, that might well be fair enough, but that's NOT at all what's been going on.
This isn't some free trade utopia, it's essentially fraud, they're saying they made no profit in a country, when they really did. It's not totally dissimilar to the types of things that Enron got up to.