Almost £4b more in cuts coming in the budget.

[foxy lady]

 

I'm not suggesting these companies did it, but there have been recent high profile cases where multinational corporations claimed they made no profit in the UK to avoid paying tax (but it is now alleged this was not the case and they had misled HMRC and other foreign tax authorities). So it does seem to be possible to use artificial structures to minimise tax by misdirection and it does seem to be not so uncommon (for large multinationals).

 

Well that would depend how you define UK profits. How much should a multimational coffee house charge its UK subsidiary for coffee beans? Or a steel comany charge its UK arm for iron? Volkswagen for instance can charge the UK importer whatever it wants for cars so that the profit on sales stays in Germany. If you don't like it don't buy a Volkswagen.

 

It does amuse me that folk are "having a go" at the current government about this when they extract £130 million out of Google for the backtax from the years when a previous government never attempted or managed to extract a penny. Over the last 5 years there have actually been serious attempts to force these companies to declare "reasonable" profits in the UK, a policy which is paying dividends. Contrast to the previous 13 years where nothing was collected and no one even mentioned it was happening.

[ricgem2002]

This does seem to be an important issue with folks desperate to find a straw to cling too. You might or might not be aware that Grangemouth refinery and chemical works pays no corporation tax either, despite having a turnover running into hundreds of millions.

The reason is simple. You only pay corporation tax if the company makes a profit. So if you pay out everything in salaries, pensions, wages, VAT and dividends there is no company profit left to tax. However those picking up salaries, wages and dividends do pay the tax on them. The tax on dividends being 10% makes it a pretty standard way for small family businesses to run their affairs. It is part of our tax system and is neither tax evasion or tax avoidance. It is called running a business.

and if you believe that rubbish you will believe owt :loopy:

[nightrider]

Well that would depend how you define UK profits. How much should a multimational coffee house charge its UK subsidiary for coffee beans? Or a steel comany charge its UK arm for iron? Volkswagen for instance can charge the UK importer whatever it wants for cars so that the profit on sales stays in Germany. If you don't like it don't buy a Volkswagen.

 

It does amuse me that folk are "having a go" at the current government about this when they extract £130 million out of Google for the backtax from the years when a previous government never attempted or managed to extract a penny. Over the last 5 years there have actually been serious attempts to force these companies to declare "reasonable" profits in the UK, a policy which is paying dividends. Contrast to the previous 13 years where nothing was collected and no one even mentioned it was happening.

 

better than labour yes, but also far worse than the french managed to get google to pay.

 

---------- Post added 14-03-2016 at 13:51 ----------

 

How do you know he switched? How do you not know the changes to disability allowances were not part of the budget?

 

---------- Post added 14-03-2016 at 13:00 ----------

 

 

What tax cuts?

 

There has been mention of reducing the highest tax rate band in the next budget. Wasn't it also reduced under this government once from 50% to 45%?

[foxy lady]

and if you believe that rubbish you will believe owt :loopy:

 

Actually I believe the chartered accountant who prepares our financial statement. I wouldn't expect you to have a clue.

 

---------- Post added 14-03-2016 at 13:54 ----------

 

better than labour yes, but also far worse than the french managed to get google to pay.

 

Perhaps we should have started earlier.

[ricgem2002]

Actually I believe the chartered accountant who prepares our financial statement. I wouldn't expect you to have a clue.

 

---------- Post added 14-03-2016 at 13:54 ----------

 

 

Perhaps we should have started earlier.

ah now its coming out you just like the rest of the tax avoiding lot who thinks its ok to pay nowt . well done

[L00b]

There has been mention of reducing the highest tax rate band in the next budget. Wasn't it also reduced under this government once from 50% to 45%?

Non-point, I'm afraid.

 

The 50% rate was a political stunt by NuLab in the last months before the 2010 GE:

The previous Labour government increased the top rate from 40p to 50p in 2010, but the current government cut that to 45p with effect from April last year.

They'd done without it for 13 years prior, so that was just 11th hour political opportunism and vindictiveness. Edited March 14, 2016 by L00b

[Eric Arthur]

Of course it is connected, that is a ludicrous statement even by your standards old chap,

The government has the financial control to see fit what it takes and what it gives out....

perhaps if Gideon paid his fair share of tax then he would not have to take from the disabled

http://www.independent.co.uk/news/uk/politics/george-osborne-receives-dividend-payment-from-family-business-that-pays-no-corporation-tax-a6873151.html

 

Tax isn't meant to be fair, you only pay what's due, not what you think should be due. That even applies to politicians.

 

---------- Post added 14-03-2016 at 14:12 ----------

 

You couldn't make it up.

 

That is exactly what banjodeano is doing.

[Berberis]

better than labour yes, but also far worse than the french managed to get google to pay.

 

---------- Post added 14-03-2016 at 13:51 ----------

 

 

There has been mention of reducing the highest tax rate band in the next budget. Wasn't it also reduced under this government once from 50% to 45%?

 

Call me cynical but, the top rate of tax was only raised from 40% to 50% 13 days before Gordon Brown announced the 2010 election, knowing full well he was going to lose. Labour had 12 years to raise the rate but failed to do so. Take form that what you will.

 

Lowering our top rate of tax (assuming back to 40%) would only level the Uk with our closest comparison, Ireland. By comparison, France has the highest top rate of taxation in the world at 75% and high earners are leaving France in huge numbers. London is one of the prime locations for these people, meaning our tax coffers are bolstered.

Edited March 14, 2016 by Berberis

[ricgem2002]

That is exactly what banjodeano is doing.

he not making it up its there for you to see :hihi:

[L00b]

Lowering our top rate of tax would only level the Uk with our closest comparison, Ireland.

Not so I'm afraid.

 

Ireland has long had higher income taxation relative to the UK, and in 2010 was taxing income at 20% from the first €1 earned plus higher rate of 41% kicking in at between €32k and €41k (threshold acc. to married/single, kids/not), plus the tax credits cut and the new levies which were effectively stealth income tax increases (higher rate on PAYE employees and PRSI, notably).

 

At the material time, 2010 (and still, to an extent), it was beyond eye watering: UK, US, Kiwi and Aussie firms were all hoovering up Irish professionals fleeing Lenihan's fiscal persecution.

 

Man, was I glad we'd left the place in 2008 (until which year I had been paying high rate income tax there, and since which year I have been paying high rate income tax here).

Edited March 14, 2016 by L00b