Because of different service and intellectual property agreements between different subsidiaries of the company, the subsidiaries almost never generate substancial (accounting) profit.<p>IMO, that&#x27;s perfectly fair. E.g. Apple isn&#x27;t generating profit in the UK; it&#x27;s generating <i>sales</i> in the UK (which are taxed as all sales are), but most of its <i>profit</i> was generated in the US (design, research, strategy, innovation, ...). I think it&#x27;s a huge problem that the US doesn&#x27;t force companies to pay tax on profits.