Reply to post: Not fit for purpose

Now on Amazon Prime: The Amazing Shrinking UK Tax Burden

Nick Kew Silver badge

Not fit for purpose

Once again, we have an illustration of why corporation tax is not fit for purpose and should be replaced with an alternative tax structure.

Of course, direct alternatives ain't easy: they are all flawed. One the UK has moved towards - reducing corporation tax but introducing a new tax on dividends - is linked to the shareholders' tax status and thus easy to avoid (though the minority who can't avoid it will be among the well-to-do). VAT, income tax and employment tax (NI) are valid alternatives and would be more so with a level playing field, but are historically overtaxed as easy pickings for HMRC.

Here's a better idea we won't see in the foreseeable future.

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