PIP in a real mess.

[sutty27]

you not heard of these

http://www.bbc.co.uk/news/business-34504474

 

Yep, lower the tax they have to pay and they will very likely pay it instead of putting a lot of effort into working the system to limit their tax liabilities.

 

You will hear stories like this.

 

Facebook to cut £280m from tax bill through bonus awards.

 

Reports in the Sunday Times said that over the next three years, the company was planning to pay out some £280m in share bonuses to staff - around £775,000 each - reducing the amount of net profit on which it would have to pay corporation tax.

 

That means they are avoiding paying £56m in tax

 

 

Sounds really bad doesn't it.

 

But bonuses paid out will result in an additional £126m. in tax being paid by its employees.

[I1L2T3]

Yep, lower the tax they have to pay and they will very likely pay it instead of putting a lot of effort into working the system to limit their tax liabilities.

 

You will hear stories like this.

 

Facebook to cut £280m from tax bill through bonus awards.

 

Reports in the Sunday Times said that over the next three years, the company was planning to pay out some £280m in share bonuses to staff - around £775,000 each - reducing the amount of net profit on which it would have to pay corporation tax.

 

That means they are avoiding paying £56m in tax

 

 

Sounds really bad doesn't it.

 

But bonuses paid out will result in an additional £126m. in tax being paid by its employees.

 

Really? Prove it.

[sutty27]

Really? Prove it.

 

So you now think that employees are also avoiding paying tax, just how would they do that?

[I1L2T3]

So you now think that employees are also avoiding paying tax, just how would they do that?

 

You seem to know what contracts they are on. You tell me.

 

---------- Post added 19-03-2016 at 19:46 ----------

 

RE: welfare reforms this gets worse, but very well done to this Conservative Mp for speaking out:

 

'there was an even an outrageous suggestion that the central reform would be for work to be prescribed by NHS professionals'

 

http://www.stephen-mcpartland.com/news/903-i-welcome-this-resignation-and-believe-it-is-a-real-opportunity-to-get-welfare-reforms-right

Edited March 19, 2016 by I1L2T3

[sutty27]

You seem to know what contracts they are on. You tell me.

 

You do understand that employees pay income tax and when they are paid over £150K they pay 45%.

 

Now explain why you think facebooks UK based employees won't be paying income tax and how they will be avoiding it.

[I1L2T3]

You do understand that employees pay income tax and when they are paid over £150K they pay 45%.

 

Now explain why you think facebooks UK based employees won't be paying income tax and how they will be avoiding it.

 

Depends on how their contracts are structured and how bonus payments are made.

 

When I worked for a big US corporation I was paid some bonuses in shares that were traded on the NYSE. I've still got 2,000 shares in that corporation and they're looked after by a wealth management company in the USA. Other bonuses were paid as cash, in dollars and are looked after by the same wealth management company. I get a statement every few months showing the total value of the portfolio: shares + cash. I have to deal with the IRS periodically about the tax side of it, e.g. to prevent witholding of earnings from the portfolio.

 

To be honest looking after it is a pain in the backside. It's only wortha fraction of what the Google employees' bonuses are but I would take a different view if I was getting bonuses like theirs.

 

So, tell me what contracts the Google employees are on and how their bonuses are structured. You seem to know already so it should be easy.

Edited March 19, 2016 by I1L2T3

[sutty27]

Depends on how their contracts are structured and how bonus payments are made.

 

When I worked for a big US corporation I was paid some bonuses in shares that were traded on the NYSE. I've still got 2,000 shares in that corporation and they're looked after by a wealth management company in the USA. Other bonuses were paid as cash, in dollars and are looked after by the same wealth management company. I get a statement every few months showing the total value of the portfolio: shares + cash. I have to deal with the IRS periodically about the tax side of it, e.g. to prevent witholding of earnings from the portfolio.

 

To be honest looking after it is a pain in the backside. It's only wortha fraction of what the Google employees' bonuses are but I would take a different view if I was getting bonuses like theirs.

 

So, tell me what contracts the Google employees are on and how their bonuses are structured. You seem to know already so it should be easy.

 

I only know what the article says and its says they will pay tax on the bonuses, if you think otherwise that's up to you, and down to the tax office if they are acting illegally.

[I1L2T3]

I only know what the article says and its says they will pay tax on the bonuses, if you think otherwise that's up to you, and down to the tax office if they are acting illegally.

 

They might pay tax on the bonuses if they are added to pay and taxed using PAYE but trust me with a large US corporation the chances of everybody being paid their bonuses in that way are minimal.

 

There was nothing illegal about me getting paid my bonuses in shares that are managed in the USA. It is very, very common for multi-nationals to do this, especially US-based ones.

 

I could wait for the shares to double and then sell them in a tranche each year, repatriate the cash and pay less tax than if I'd been paid cash bonuses and it had been subject to PAYE at the time of the original bonus award. Nothing illegal there. Sadly the shares haven't been doing well so I might have to wait a while

[sutty27]

They might pay tax on the bonuses if they are added to pay and taxed using PAYE but trust me with a large US corporation the chances of everybody being paid their bonuses in that way are minimal.

 

There was nothing illegal about me getting paid my bonuses in shares that are managed in the USA. It is very, very common for multi-nationals to do this, especially US-based ones.

 

I could wait for the shares to double and then sell them in a tranche each year, repatriate the cash and pay less tax than if I'd been paid cash bonuses and it had been subject to PAYE at the time of the original bonus award. Nothing illegal there. Sadly the shares haven't been doing well so I might have to wait a while

 

The bonus from my point of view is I have never been on face book so at least I don't help them get rich.

[GLASGOWOODS]

Well you be disgusted about that and the rest of us will be disgusted about disabled people having over £4bn taken from them in cuts (making them the largest losers from the Budget), with 350,000 people expected to lose up to £3500 a year, whilst at the very same time Osborne is handing out tax cuts with 80% of the money that will cost going to people who regardless of what he might claim aren't middle earners but in the top 20% of earners in this country.

 

If there was a need for benefit cuts then he wouldn't be flinging around the money he's supposed to be saving in tax cuts. This was their choice, not a necessity.

 

Honestly, go read the IFS analysis and find something worth being disgusted about.

 

My bold...Do you have any info on this?