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Should Tax avoiding firms be named and shamed
Comments
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Thrugelmir wrote: »Actual tax computations differ greatly to published annual profit figures. There's no correlation.
The very starting point for any companies tax computation is its operating profit published in its annual accounts.
A little daft to say there is no correlation.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
Thrugelmir wrote: »Your statement was similar to that of a media journalist or politician. It was misleading and ill informed in the sense of how to assess the figure. We live in a world of soundbites, 60 second attention span.
If you understand accounts and business. You'll know that setting up new operations doesn't come cheap, hence my example of Amazon.
A bit naive (to say the least).
Multi-nationals are using tax arbitrage to move profits to the lowest jurisdiction, in which most cases have no business rational other than to avoid taxes.
Why do Starbucks use Switerland for there coffee trading profits ?
Because the corporate tax rate is 12%
Why do companies use Luxenbourg ?
Because until 2011 Luxembourg had a free for all on transfer pricing, meaning you could move profits onwards to caribbean tax havens without being subject to an "arms length test"
Why do so many inter company loans originate in the British Virgin Islands ?
Because there is no corporate income tax.
Its clearly very difficult when even EU countries are taking a "beggar thy neighbour" approach to corporate tax (Ireland, Lux and Netherlands being the main culprits).US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
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Quite why anybody frequents this chain is beyond me, always has been. Just another "American" brand trying to relieve us of money paying for hyped up goods."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Starbucks seem to have demonstrated very neatly the point Margaret Hodge was doubtless making - that taxation is voluntary, not subject to rules and regulations, but dependent on the charitable whim of a company deciding how best to buy credibility.
It may misfire in this case, but the point has been made - liability to taxation is determined by individuals and companies, not by HMRC.
As a matter of interest, is this legal?
Supposing I wrote to HMRC informing them that I thanked them for their assessment of my tax liability, but I had decided to gift them an additional million pounds as a moral gesture. Doubtless they might feel that they wanted to publicise my example as an encouragement to others.
Are they allowed to accept gifts from taxpayers, or is there not a strict code under which they have to politely decline such payments, on the grounds that it might appear to be compromising their impartiality?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Clifford_Pope wrote: »Starbucks seem to have demonstrated very neatly the point Margaret Hodge was doubtless making - that taxation is voluntary, not subject to rules and regulations, but dependent on the charitable whim of a company deciding how best to buy credibility.
It may misfire in this case, but the point has been made - liability to taxation is determined by individuals and companies, not by HMRC.
As a matter of interest, is this legal?
Supposing I wrote to HMRC informing them that I thanked them for their assessment of my tax liability, but I had decided to gift them an additional million pounds as a moral gesture. Doubtless they might feel that they wanted to publicise my example as an encouragement to others.
Are they allowed to accept gifts from taxpayers, or is there not a strict code under which they have to politely decline such payments, on the grounds that it might appear to be compromising their impartiality?
yes it is legal.
you can give money to the government if you wish.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
You would have thought HMRC would want to strongly discourage this practice. It gives the impression that Starbucks are in charge of the tax assessment process, and they merely inform HMRC what they have decided to pay.
When Amazon and Google follow suit and notify HMRC of their decision, the tax man is going to feel rather silly.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Clifford_Pope wrote: »You would have thought HMRC would want to strongly discourage this practice. It gives the impression that Starbucks are in charge of the tax assessment process, and they merely inform HMRC what they have decided to pay.
When Amazon and Google follow suit and notify HMRC of their decision, the tax man is going to feel rather silly.
Perhaps we could do away with HMRC and just have donation buckets on each street corner. They could be collected with the refuse because rubbish is all we would end up with relying on voluntary contributions."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I missed this yesterday, but excellent FT article by John Kay on Starbucks and the logic of the 'arms length principle' in international taxation:
http://www.ft.com/cms/s/0/d6b03730-4385-11e2-a48c-00144feabdc0.html#axzz2EsO0sjppPlease stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
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Kennyboy66 wrote: »A bit naive (to say the least).
Interestingly enough we followed Amazon from its early days. As obviously had backers with deep deep pockets to set up its UK operations. Initially we struggled to see how it would make a decent return. ( Internet was not what it is today).
Obvious now there was a long term strategy. To maximise location of supply and distribution points (for tax amongst other things) along with quashing the "local independents" in terms of trade.0
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