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Voluntary taxation
pqrdef
Posts: 4,552 Forumite
Question posed in the FT, re Starbucks. Should firms be allowed to pay tax they don't legally owe, to promote their business?
"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
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Question posed in the FT, re Starbucks. Should firms be allowed to pay tax they don't legally owe, to promote their business?
It's a good question. Starbucks UK can change the amount they owe the taxman quite easily by changing the rate at which they pay Starbucks Inc their licensing fees. What's a reasonable licensing fee? I have no idea.
There is a cost to Starbucks paying more tax: they make less profit so will have fewer stores and thus employ fewer people. They will also pay less in dividends so anyone holding Starbucks stock in their pension fund will have less to retire on.
There is no free lunch. Starbucks have to take the tax money from someone else so voluntary tax is the same as the tax man taxing one of the recipients of Starbucks's cash.
Having said all that, I can see why the current fuss about corporate tax is so heated. You guys are still all screwed for the next 5-10 years regardless and I can see why you're starting to hit out.0 -
Maybe they could impute a profit margin onto large multi-nationals the same way that they do on small partnerships and businesses.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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Having said all that, I can see why the current fuss about corporate tax is so heated. You guys are still all screwed for the next 5-10 years regardless and I can see why you're starting to hit out.
Major corporations may be paying taxes which reflect tough operating conditions, but they don't seem to be sending out the same message when it comes to board level pay and higher execs in general.
Rewards at the higher levels have easily exceeded remuneration amongst the masses in these companies over the last decade+.
It's pretty clear who they think is important (and it's not us, the masses).0 -
Maybe they could impute a profit margin onto large multi-nationals the same way that they do on small partnerships and businesses.
That would seem to be a reasonable approach, after all big businesses pay tax within the rules that exist by and large. Change the rules and you change the tax paid.
Clearly higher tax means fewer businesses so a balance must be struck.0 -
That would seem to be a reasonable approach, after all big businesses pay tax within the rules that exist by and large. Change the rules and you change the tax paid.
Clearly higher tax means fewer businesses so a balance must be struck.
There does require an acknowledgement that the early years of entry into a market may involve a certain loss leadership strategy, but this could be catered for.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Anyone who places their pension money on a handful of beans, well smell the coffee....Be happy...;)0
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Every politician in Europe is falling over themselves to bash corporations who "don't pay enough tax".
In fact the fault lies entirely with the policiticians, who, despite what they'd like to fool people into thinking, have more than enough powers to force companies to pay more tax. However they don't want to do that. The tax system is the way it is by design. Unfortunately pretty much all MPs are utter hypocrites so they're happy to design a system full of loopholes then complain when companies (as they are legally required to do) seek to minimise their tax bill & get the best return for their shareholders.
Governments could & should introduce massively simpler systems of taxation. They won't though.0 -
You guys are still all screwed for the next 5-10 years regardless and I can see why you're starting to hit out.
Not all of us. I've geared my finances to make the best of the current financial turmoil and I'll come out of it in a far better financial position than I was going in.
Houses are cheaper, tradesmen are undercutting each other, mortgage rates are low and many shares are still at bargain prices. Recessions are buying opportunities, only the mugs buy in booms (when everyone else is buying and the media is full of it).0 -
Question posed in the FT, re Starbucks. Should firms be allowed to pay tax they don't legally owe, to promote their business?
Interestingly a spokeswoman for Uk Uncut was making that point today on BBC news. Simply stating that the £20m will (could/probably etc) just come out of their marketing budget as a PR stunt.
No doubt that would be tax deductible too.
I know they still have to make a net surplus somewhere to be able to pay it.
I wonder if this could be a Ratner moment for Starbucks? Perhaps they could reopen as URschmucks?"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 -
Why not simply close the legal loophole which allows company to dodge tax?Happiness is buying an item and then not checking its price after a month to discover it was reduced further.0
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