Tax Havens - a good thing ?

A_fiend_for_life

Barclays gags Guardian over tax

http://www.guardian.co.uk/business/2009/mar/17/barclays-guardian-injunction-tax

Guy_Montag

A_fiend_for_life wrote: »

Barclays gags Guardian over tax

http://www.guardian.co.uk/business/2009/mar/17/barclays-guardian-injunction-tax

17 Mar 09, 1:16pm (about 4 hours ago)

The Guardian's solicitor, Geraldine Proudler, was woken by the judge at 2am and asked to argue the Guardian's case by telephone.

No chance of saying: "What f&*@ing time do you call this? Ring me back at 9am Wiggy!"

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No-one would have noticed if they hadn't gagged the Grauniad, but the dozy f'kers tried to stop it getting out. Too late.

Wikileaks

A_fiend_for_life

It's high time there was a standard for declaring that businesses are paying fair tax. Those that don't pay fair tax at the very least should be exempt from government contracts.

When offshore subsidiaries can tender for contracts on the back of reduced tax liabilities it will only force other companies to do the same. Undercutting in this way is likely to put more emphasis on cost and ultimately reduce competition and innovation.

It seem's a bit crass when people are pointing the finger at immigrants when it is our own businesses and industries that are creating far greater damage.

Does the Telegraph, Times or Mail slate businesses that pay reduced tax?

A_fiend_for_life

Guy_Montag wrote: »

No-one would have noticed if they hadn't gagged the Grauniad, but the dozy f'kers tried to stop it getting out. Too late.

Wikileaks

Excellent - I love damage limitation exercises.

kabayiri

A_fiend_for_life wrote: »

Barclays gags Guardian over tax

http://www.guardian.co.uk/business/2009/mar/17/barclays-guardian-injunction-tax

Barclays are estimated to have an effective rate of 28% tax, several points lower, down to their clever management of offshore capital.

I never realised how widespread this practise was :-

- management foresight is IP registered offshore by many companies for hundreds of millions
- the Shell logo is registered in Switzerland, so all use of the logo gets booked to that company
- HMRC tax offices are leased from an offshore company! So the taxmans landlords evade tax
- Walkers crisps brand image is registered offshore
- ditto for many drinks brands, eg whisky.

I know what people will say....all this is legal. But, quite frankly this is billions of lost revenue, and we as a country are a bit short of cash at the moment.....;)

A_fiend_for_life

Kabayiri erm yes thats looking a lot more widespread.

This is looking a potentially lengthy boycott list.

John_Pierpoint

Is it just me?

You will never stamp out tax havens, or "flags of convenience", for as long as countries with a lack of natural advantages can set up a financial industry.
Why is Switzerland a wealthy low tax country?
Are Swiss citizens deprived living on ghetto estates?

Perhaps the real problem is Governments addicted to debt, buying votes from an electorate addicted to welfare hand outs and debt?

No wonder Barclays is fighting like mad to avoid Gordon Brown becoming its major share holder.

I am far from convinced that there is any morality to the tax system, be you game keeper or poacher. It is just a shame that both sides employ some of the countries' finest brains, indulging in a negative sum game. Perhaps humanity would be considerably better off if they all got real jobs.

vivatifosi

I'm with you there John. I don't see how you can stamp out tax havens. Another part of the problem is that the money is so well hidden. In the UK it may be offshored first through the Channel Islands, but then onto a second destination, say the Caymans or Panama. How do you trace it through multiple jurisdictions?

However taking the side of those who do see the system as unfair, I like many here run a small business. I'm pig sick that the tax regime of small businesses has been tightened - the removal of £10k tax free dividends is a prime example - while those with larger and more cash rich organisations can move their money around for efficiencies we can't dream of. Its not fair being the easy target.

ninky_2

this maybe a crazy idea (i'm good at those!), but could we have a labelling system that let the consumer know the goods and services they were paying for were from a company that was resident in the UK for tax purposes. i'd try to support them.

vivatifosi

In theory there's no reason why not. However if a multi-national felt that it was losing tax advantages or under pressure to do so there's a good chance that would feed back into the company through job cuts or moving of their factories overseas, so we could end up worse off in the longer term. That's another reason why this is very hard to act unilaterally on.