Reply to post: The ironic part

Google UK coughs up £130m back taxes. Is it enough?

nsld

The ironic part

Is that many of these companies set up in the UK to carry out this kind of low/no tax trading with the full support of the UK government.

Things like the "costs plus" arrangement allows a company to channel all sales overseas and not charge VAT whilst running a "marketing" operation which reclaims the VAT it spends.

This gives a massive advantage over the local businesses and the only taxes paid are payroll related.

The key problem is the government set this up and encouraged its use assuming it would never be as big as Google or amazon have made it. Now they see how big it is

they want to change the game.

That's the sad reality although it could of course be a massive anti septic* conspiracy!

* urban dictionary should help. ....

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