Reply to post:

Facebook pays, er, nope, gets £11m credit from UK taxman HMRC...


What you need is a "Money Leaving the country" tax.

If the profits stay in the UK then they can be taxed at the existing corporation tax rate.

Any money that leaves the country that goes to another company in the corporate structure (however that might be - "brand licencing", "coffee beans purchase" or however the company chooses to dress it is taxed at the same rate. Obviously make it Illegal to avoid this tax by moving the money through a 3rd party or something.

If they try to avoid this by not having a taxable UK company - then just set a rule that they are forced to above a certain turnover or percentage of their global sales - even if that's just a virtual sales and marketing office - or pay a hefty export tax, that happens to be the same as the same as the corporation tax (on top of VAT of course)

Not saying its quite as simple as that, or there's no flaws that need working out - but it'd be a good start!

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2019