Re: Think about it...
"Which Countr(y)ies still give you decent interest on savings? Perhaps I could move mine there too?"
If you are investing hundreds of billions, you get much better rates.
Today, the UK's tax deal with Google – or rather, corporate parent Alphabet Inc – looks worse than ever. Here's why. 1. Google avoids Osborne's 'Google Tax' Remember the Diverted Profits Tax? Announced in 2014, the DPT was designed to “deter and counteract” companies that “seek to avoid creating a UK permanent establishment” …
"Google has £100bn just sitting there. Earning interest... As tax, they could pay for roads, hospitals, police etc. rather than sitting as a number in a corporation account."
That's not how it's done. The money is Google's property not the Crown's, and we stopped using "I want that, so I'll have it" that as a philosophical basis for seizing property when the Magna Carta was signed.
What we need is a fair and efficient tax system. Not backroom deals.
Well Google's profits comes from advertisers. But okay, that ultimately comes from consumers. Still, faced with lower rates of corporation tax do you think companies would (a) pass on the savings to customers, through lower prices, or (b) pass on the savings to their shareholders as higher dividends?
A two pipe puzzle, that one.
No, sorry, you are wrong. Corporation tax is charged on profits that have already, as it were, been banked. It comes out of shareholder dividends or remuneration-committee voted boss pay. What makes you think for one microsecond that if a company did not have to pay corporation tax, it would cut prices next year?
You will be telling me next that if we did not have to pay VAT, shop prices would drop by over 16%.
Maybe not 16%, but SOME appreciable amount. Otherwise, one of the many other businesses that would also benefit from the tax cut would decide to use the new leeway to undercut the competition. Competition is what keeps companies honest since they can't keep their prices high without risking losing business.
Eh? Tax isn't about taxing some piece of money, it is about taxing transactions. Otherwise, every time the government printed a pound it could only tax it once!
Of course we paid tax when we earn't the money, then paid tax when we spent it, then the company needs to pay tax when they earn it and should also pay tax when they spend it (in fact, companies do not -- mostly they pay tax only on profits, apart from employers NI and some transaction costs, but certainly not on revenues). And the shareholders and employees get taxed when they receive it, and round we go again. That is how tax works.
Austerity? What austerity. See, if Labour had some sort of a clue between them, shredding the current government would be a piece of piss. Just focus on the mess Osbourne is making with the country's finances and hammer home his continued hamfisted attempts at running the exchequer. Instead you end up with that dinosaur Corbyn and his entryist
Militant Momentum cronies focusing on trivia, obsessions with the spare room subsidy, and generally trying to "Draw lines" whatever that means.
In related news, HMRC hopes to rake in a few million in grabbing the odd person making a tiny income on fleabay. As they say, it's not what you know, it's who you know (and can bribe)...
Actually Andrew there are plenty on the "Corbynite Left" who are perfectly capable of counting without having to take their shoes and socks off to get above twenty who have made very clear their dislike of this "deal" without out resorting to criticisms that you would be likely to characterise as "hard left". It has indeed attracted well merited and clearly expressed criticism across the whole political spectrum (I am very glad to say). All you are doing with that kind of comment is giving the impression that you are paying obeisance to the Daily Fail and their like, something which I am very certain is not an impression that you wish to give. What is the problem with admitting that your feelings about this deal are also shared on the Left without making snide remarks? God help me, I even agree with Tories sometimes - not very often, but it has been known to happen. :P
Chatting to my boss today (and hes the sole owner of the business) he utterly hates this google tax deal, and hes the sort of right wing nutter who'd vote tory no matter what insane policies they had.
Why does he hate it? and the small/medium businesses we supply hate it?
BECAUSE THEY HAVE TO PAY FULL CORP TAX ON THEIR PROFITS BECAUSE THEY ARE UK BASED.
They cant avoid it, if they try delaying paying it, inland revenue tends to turn up with menaces.
And then the tories let google off by paying a pittance on what they really owe.
Perhaps I should go self employed and base myself in the Cayman islands.. and see if the government will cut me a nice deal that means I only pay 10% tax on my income instead of the 35% or so that gets demanded....
I suggest, AC, that you go back and look at the last lot of election results, because you'll see that the majority of us *DID NOT* vote for them, they got about 37% of the votes which was actually only 24% of the electorate.
The fact is that the Tories only got around 600,000 more votes than they did previously, but because of our broken electoral system, that was somehow parlayed into a "majority".
Until that gets fixed, we're going to keep getting Buggins' Turn governments with no actual change happening.
If I was king I'd probably scrap corporation tax altogether in favour of something harder to avoid. At the moment businesses fall in to two categories, those so small they can't avoid it and those big enough to. If you are small enough to not be able to avoid it you can usually arrange it so the amount you pay is relatively small by the use of judicious spending and claw back from years where you made a loss. As a tax it just doesn't really work very well.
A solution to not only the tax problem but also for the state budget also. What would happen to the companies that don't pay their taxes if that company suddenly become a state owned? I think after a couple of companies became state owned the rest of the companies would be a little more reasonable, and with the profits from those companies would help the budget while not destroying the ability of the company to do its business.
How many of us if we had enough money to be worried about such things as higher rates of tax, would try to do anything they could by any legal means there were available to keep as much of that money being taken away from them as possible? Until you've been in that position yourself don't criticise a company run by real people trying to do the same. If they tighten up the laws then they'll have to obey, right now they've done nothing wrong.
You fail to comprehend the scale of what is going on.
This isn't just a matter of a few thousand quid here or there, it is money running into the millions and billions. At what point do you say "hmm, actually I think having enough money to buy a small country, is sufficient..."?
I comprehend all right. I'm just saying how easy it is for people to criticise right now when they would probably do anything within their power to keep their own cash rather than hand half of it to the tax man. As someone pointed out further up, they aren't doing anything illegal, our laws allow them to do this and they've been doing it a lot longer than the tories have been in power too.
"How many of us if we had enough money to be worried about such things as higher rates of tax, would try to do anything they could by any legal means there were available to keep as much of that money being taken away from them as possible?"
Life isn't perfect in the UK by any means, but I do feel somewhat privileged to have grown up and now raise a family in the UK having seen some of the alternatives on my travels. I want more people to have the same chance at a prosperous peaceful life that I had, which requires a lot of money, which requires a lot of tax to be paid. So I don't resent paying a full portion of tax, after all it *should* go towards making the lives of our kids & the folks around us better - which *should* make us all better off.
Tax avoidance is simply a way of gaining an unfair advantage over your team mates.
Biting the hand that feeds IT © 1998–2019