Corporation Tax NI

Bridgeton_Boy

Hi Folks,
Is it just me or does anyone else have a bad feeling about giving the NI Assembly control over corporation tax. Treasury minister David Gauke own figure states that £300 million a year will come off the block grant as the price to pay for this. Looking at the way the local MLAs have run the education service and health service into the ground on what they already get ( and that's even with an extra £100 million loan) I fear the worst. What do you think yourselves ?

Old_Git

Bridgeton_Boy wrote: »

Hi Folks,
Is it just me or does anyone else have a bad feeling about giving the NI Assembly control over corporation tax. Treasury minister David Gauke own figure states that £300 million a year will come off the block grant as the price to pay for this. Looking at the way the local MLAs have run the education service and health service into the ground on what they already get ( and that's even with an extra £100 million loan) I fear the worst. What do you think yourselves ?

I suppose they are trying to encourage investment ,however the big multinationals will base there head office wherever they can pay less tax.
I probably paid more tax than starbucks due to this loophole .

qwert_yuiop

Any boost to the economy resulting from large inward investments will surely need quite a few years before there will be any net tax benefit. I presume the reduction in block grant will not occur until the tax take improves, or am I hopelessly naive? If not, get ready for serious austerity.

It's not the site of their head office which counts. It's an ability to siphon costs through holding companies in low tax jurisdictions.

President Obama has just announced that all US companies will have to pay a tax on worldwide profits to the U.S. revenue. It may be the time to promote ourselves as a low tax country has already passed. There is no longer much point in apple for example running their profits through Ireland if the U.S. is going to get their pound of flesh no matter where they make their profits.

guiriman

qwert_yuiop wrote: »

Any boost to the economy resulting from large inward investments will surely need quite a few years before there will be any net tax benefit. I presume the reduction in block grant will not occur until the tax take improves, or am I hopelessly naive? If not, get ready for serious austerity.

I think the block grant reduction represents the immediate tax revenue loss from reducing the corporation tax rate for existing companies so it will take effect from day one. They'd be betting that they can get this back (and more) from new companies coming here.

donnac2558

I can see it all going bad very quickly.

A reporter in the Republic made a statement about the big companies come take it, and then shift their money back home to the US,Japan or China. They don't spend the money where they are(down South in his case), so its not the all singing and dance its made out to be.

dsab

Isn't this 10 years too late anyway?

As far as I understand there a new US Law coming into place that US companies will from now on have to pay taxes in the US on earnings from foreign subsidiaries? And some US companies have already reacted by shifting parts of their foreign operations back to the US.

qwert_yuiop

They provide employment there, if not spending profits there.

Bridgeton_Boy

Thanks folks, good to get your views on this. I have to say that i am really worried about this. I just dont see were all this new investment is going to come from. At a time when we are losing good well paid skilled manufacturing jobs these are being replaced by low paid call centre jobs which in many cases the business after pocketing big grants soon pull the plug and then head off to some place like India. I think £300 million a year is too big a gamble to take especially with the caliber of the politicians that are running this country at the present time.

warmhands.coldheart

I've already commissioned my Canoe...... must remember the paddle !!

D.A.

These are the same politicians who voted to keep spending money training teachers who we don't have jobs for, and cut university funding so we can't produce enough graduates for the jobs we can't fill...

warmhands.coldheart

D.A. wrote: »

These are the same politicians who voted to keep spending money training teachers who we don't have jobs for, and cut university funding so we can't produce enough graduates for the jobs we can't fill...

Genius......... You have to love them Really!!! My OH is currently working in an IT firm here in Northern Ireland and contrary to all the spin we are being given about the glut of all these wonderful IT Graduates we have here it's all a load of CARP!!... We have a high level of graduates yes..... BUT in all the wrong areas and in the case of the company my OH works for... they ALL require re-training when first employed..... and a lot require spoon feeding as they seem to have no initiative or drive.... expect it all handed to them on a plate...