Tax Avoidance

M

marchantsuk

Veteran
 Somerset
So MP's lining up to criticise Amazon, Starbucks and Google for playing the rules and avoiding huge corporation tax bills.
Pot and Kettle springs to mind, it's ok to defraud the UK public by fiddling the expenses system, but not ok for others to find a way of working around the rules.

Thoughts?
 
Would agree. While its very wrong that those big corporations don't pay their fair share, its the government and tax office who have left loopholes allowing them to do so.
 
Or for a chancellor to "flip" his home depending on whether he talks to the tax office or the MP expense office.

I can't comment too much on what the big companies are doing as I do exactly the same with my much smaller company. It is legal and since when did morality come into play when it comes to taxes.

Also it is a bit short sighted to just quote tax on profit as the issue whilst every corporation pays tax on employees, VAT etc etc but that is ignored out of convenience.
 
But creates an atmosphere of - why should I if "they" don't.

Where "they" = those who make the laws and have the biggest mouths on what others should do.
 
Its laughable ....... just who is the cretin trying to kid ? He cant do a thing without changing the laws.
Every time I see a pic of Osbourne I,m reminded of a spotty faced oik let loose with his grandads post office book.
 
Its laughable ....... just who is the cretin trying to kid ? He cant do a thing without changing the laws.
Every time I see a pic of Osbourne I,m reminded of a spotty faced oik let loose with his grandads post office book.
 
It has been tried with "oil windfall tax", then the tax on bank and bankers bonusses, now tax on corporations in general.

When will they learn that it does not work to target something in such an inbalanced way that the target group has to find a way around it to survive in a way.

Big companies are going down at the moment, and the last thing you need is to try to milk them into oblivion.
 
pvr said:
Big companies are going down at the moment, and the last thing you need is to try to milk them into oblivion.
Click to expand...

not sure these companies would go under if they paid more tax
 
Talking to my boss about this and he mentioned Cummins who his brother works for quite high up and apprantley they dictate to the UK goverment what taxes they will pay or they will pull out of the UK.

Got them over a barrel :thumbsdown:
 
Did anyone watch The Revolution Will Be Televised on BBC3. They covered a lot of this in a quite amusing way! Like the Arcadia group etc not paying taxes, really is a piss take.
 
Something to keep in mind is that Corporations in effect don't pay tax. Any tax they do pay is passed along in the price of the goods or services that they sell. Whoever buys those good or services which at some point is individuals like you and me.
 
What we need is one tax rate, set at a level that allows zero tax for genuine low pay, all loopholes closed and businesses pay the same rate on their income. Politicians built this messy pile of shite to suck up to their friends, they can fix it.

Not that they will when the chancellor and prime minister are Eton educated trust fund babies
 
Not that simple though.

I operate in a similar way to what Starbucks though. I own my own software which has intellectual property rights. That software is owned by a holding company so it is outside of the normal trading company. When the trading company sells the software (world wide), it pays the holding company the rights to use it.

So, the location of the holding company is my choice. Would you put that in a country with 40% corporation tax or in one where it is 20%?
 
Hopefully the difference is that you aren't artificially engineering a loss in your trading company by inflating what you pay the holding company to avoid tax...
 
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