MSE News: Martin's reaction to Brexit

GingerBob_3

matttye wrote: »

Another "enlightened" bremainer calling all of the brexiters thick. Yawn.

Okay, so they aren't ALL thick. Let's just call it national stupidity. If it's so bloody good that we're leaving, why has the pound dropped to its lowest level since 1985 or whenever, and why have shares plummeted? Does someone know something that the Brexiteers don't?

eDicky

phoenix_w wrote: »

You may be surprised that they voted because they want the right to buy a more powerful vacuum cleaner.

This is the incredible truth, my own brother voted on that basis.

Putting such a important decision in the hands of a dumbed-down population of Sun readers and liars with their political ambitions is democracy gone mad. Now the the British, the whole of Europe, the world, has to try and live with and survive the results.

Marchitiello

I strongly believe that a large proportion of Exit voters have simply bought in the misleading campaign put together by the Brexit side. They have not fully considered the repercussions in the short/medium and long term.

Someone above mentioned that a voter could have chosen Brexit because he simply would like to choose to buy a more powerful vacuum cleaner... Well great example of misconception. Indeed the EU put out a directive about the max power of certain appliances, in line with energy consumption reductions attempt to try to help the environment. So the aim was the greater good of the environment impact and decision like this can still happen influenced by world wide trends to try to preserve for future generations this planet called Earth we all call home.

Another big chunk of voters keep referring to decision made by people they have not elected.. Well, a basic understanding of why every so often we have held EMP election would have helped them. In simple term it can be the same arguement that voters in Richmond will have if the new runaway at HTW is ever built. They can argue that people in Westminster they have not elected have imposed their decision on them, without understanding that the MP they have elected is part of that decision making...

And finally a more practical understanding of European single market economy would help them understand that whilst the likes of Toyota and Nissan may not close the factories here, if export to the EU will incur in tariffs, they may well move the production of all right hand drive vehicles to factories in east Europe, with loss of jobs, suppliers etc as well cash flow into the UK. And there are also small businesses, like the one I have share in, that are based here, produce in EU and ship directly from the production sites outside the EU, invoicing from the UK and therefore bringing cash flow in the UK, and after paying the supplier in the rest of the EU, keeping the profit here, as well as paying accountants, lawyers and others in the UK. Our business is already evaluating moving the register office to Dublin for example, and we are on the very small side, so imagine what happen when large service and financial organisation will do the same...

LesU

Does this mean that the likes of Amazon, Google, Microsoft et al won't be able to do massive amounts of business in the UK and then pay their corporation taxes in another part of the EU, where they have declared their headquarters to be based? No wonder they were all against Brexit.

jonesMUFCforever

LesU wrote: »

Does this mean that the likes of Amazon, Google, Microsoft et al won't be able to do massive amounts of business in the UK and then pay their corporation taxes in another part of the EU, where they have declared their headquarters to be based? No wonder they were all against Brexit.

We don't know yet as the nuts and bolts of Brexit have not been worked out - that is to come in the withdrawal process.

But yes in future we can tell any company that has a physical office in the UK that they have to pay taxes here.

No doubt some will try to find a way to avoid - remember the dvd/cd companies that were based in Jersey because they found a loophole to avoid charging VAT?

Thrugelmir

LesU wrote: »

Does this mean that the likes of Amazon, Google, Microsoft et al won't be able to do massive amounts of business in the UK and then pay their corporation taxes in another part of the EU, where they have declared their headquarters to be based? No wonder they were all against Brexit.

Google offices got raided last month in Paris. Days are numbered for tax evasion.

Marchitiello

jonesMUFCforever wrote: »

We don't know yet as the nuts and bolts of Brexit have not been worked out - that is to come in the withdrawal process.

But yes in future we can tell any company that has a physical office in the UK that they have to pay taxes here.

No doubt some will try to find a way to avoid - remember the dvd/cd companies that were based in Jersey because they found a loophole to avoid charging VAT?

It is the way around as well: Barclays and HSBC have been making business all over the EU and pay corporation taxes for all the business in here. And those financial institution tax bill can easily outweight any potential loss of the Amazon percentage paid elsewhere ...

gadgetmind

jonesMUFCforever wrote: »

But yes in future we can tell any company that has a physical office in the UK that they have to pay taxes here.

Pay tax on what? All UK turnover? All UK profit? All global profit?

International transfer pricing is a complex issue and I can't see being out of the EU making it any more transparent, far from it.

And global companies that don't do much business here could simple choose to leave, and I expect that many will do exactly that. HSBC could well be one of the first to make the announcement.

bigadaj

There's a reasonable possibility of changes at major companies and particularly banks.

HSBC would be an odd one though, it's only a few months before they ruled out a move from London to hong Kong, their European business isn't significant in their overall worldwide business. Like all the big banks they have to work through the us, and pay the fines, sorry taxes, determined by the us regulators. However a us listing would give them even more regulatory issues, so I can't see HSBC being an early mover. The big German and French banks will certainly move some or all of their operations, and potentially us and Swiss as well, though to what extent well have to wait and see.

Marchitiello

gadgetmind wrote: »

Pay tax on what? All UK turnover? All UK profit? All global profit?

International transfer pricing is a complex issue and I can't see being out of the EU making it any more transparent, far from it.

And global companies that don't do much business here could simple choose to leave, and I expect that many will do exactly that. HSBC could well be one of the first to make the announcement.

If you look at Non EU companies currently trading in the UK/Europe, they basically register a separate company owned by the mother company outside the EU. The new UK/EU company is liable corporate tax in the country it operates this separate business for the trading made in that country (or within EU if applicable) and pass the net profit to the mother company. Take as an example McDonald and Coca Cola to keep it simple. The problem is that the Financial Sector international companies have long preferred London as European Base, paying corporate taxes here for all their trade within the EU. This will soon change, and the Financial Market is the biggest contributor to the UK economy....