Darth Vader Posted March 3, 2011 Share Posted March 3, 2011 Is anyone else watching the Tonight Programme on ITV now? So, 10 years ago, Boots were paying 150 million a year in corporate taxes to our tax system, last year 14 million. I never realised the full extent of their 'savings'. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted March 3, 2011 Share Posted March 3, 2011 Because they moved the company (or a very large part of it) out of the UK. Foreign-based entities don't pay tax on their overseas earnings in the UK. Just as British-based companies don't pay tax on their British earnings elsewhere. Would you like to see all companies which trade in the UK pay British taxes on their world-wide income? That should get rid of a few more jobs. Link to comment Share on other sites More sharing options...
Darth Vader Posted March 4, 2011 Author Share Posted March 4, 2011 Why would companies paying tax get rid of jobs? We all know they operate on greed, employ as many, or as little, as they like to maximise profit anyway. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted March 4, 2011 Share Posted March 4, 2011 Why would companies paying tax get rid of jobs? We all know they operate on greed, employ as many, or as little, as they like to maximise profit anyway. If a company like Boots had to pay more in tax, surely it would have less in the pot to pay staff? It would probably also put its prices up, which would affect all of us who buy their products. I just wish more companies operated like John Lewis http://www.guardian.co.uk/business/2010/mar/16/john-lewis Link to comment Share on other sites More sharing options...
Karis Posted March 4, 2011 Share Posted March 4, 2011 Nothing can be worse than the bank situation, but this is another example of how our financial process is corrupt and utterly broken. A few years ago, this would have gone unnoticed and the bosses would be laughing. Hopefully, something will be done about it now. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted March 4, 2011 Share Posted March 4, 2011 Why is it 'an example of how our financial process is corrupt and utterly broken.'? Boots have moved a large part of their company to a place where they pay less tax. They can do that. There are rather more companies which have offices/departments outside the UK than there are which operate solely in the UK. Should companies which trade in the UK be required to pay British taxes on business they do elsewhere? Link to comment Share on other sites More sharing options...
HJL_Shef Posted March 4, 2011 Share Posted March 4, 2011 Should companies which trade in the UK be required to pay British taxes on business they do elsewhere? No, but I think the point is the exploitation of loopholes. Boots presumably imports more goods and sells more goods and services in the UK than ever before, but because they invoice and purchase overseas, they can avoid some of the tax. Maybe import taxes should be higher? But then, would we not be able to get goods in, or would the prices go up? It's a difficult balancing act! According to some of my friends who work there/used to work there, Boots are not a good company to work for, at present. They were bought by an American investment company that are completing a 'streamlining' operation: they have done a variety of things, including setting unrealistic sales targets for consultant grades, only allowing 6 weekends off per year for certain grades, and introducing a rolling '3 in 24 months' sick day allowance, to make it easier for them to place people on disciplinary procedures and get rid of staff. Eventually, they will attempt to sell for a profit. Link to comment Share on other sites More sharing options...
Darth Vader Posted March 4, 2011 Author Share Posted March 4, 2011 If a company like Boots had to pay more in tax, surely it would have less in the pot to pay staff? It would probably also put its prices up, which would affect all of us who buy their products. I just wish more companies operated like John Lewis http://www.guardian.co.uk/business/2010/mar/16/john-lewis Where's any evidence of this? They have to be shown to be competitive, they're expensive to start with, compared to Superdrug, so I don't see how that stands up. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted March 4, 2011 Share Posted March 4, 2011 Not really - corporation tax is based on profits, so staff wages have already been paid by the time it comes to paying it - shareholders however.... Thats why I like the idea of John Lewis, its shareholders are its employees. A great way to run a business. I think I'd have liked to work for a company like that. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted March 4, 2011 Share Posted March 4, 2011 Not really - corporation tax is based on profits, so staff wages have already been paid by the time it comes to paying it - shareholders however.... And what do they use to pay the staff wages? Aren't they paid out of profits? Link to comment Share on other sites More sharing options...
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