Paradise Papers

Nick_C

Herzlos wrote: »

Anyway, the solution is to charge them based on revenue. Maybe drop the corporation tax entirely and bump VAT up to 30%.

But that could just transform the UK itself into a tax haven. Foreign companies with no UK presence could move their HQ here to avoid corporation tax in the country where they make most of their profits.

What would change companies' behaviour would be if consumers en masse would boycott companies who avoid paying their fair share of tax.

Sadly, most consumers will be easily outraged by these stories but continue supporting companies like Apple, Amazon, and Starbucks.

Herzlos

Nick_C wrote: »

But that could just transform the UK itself into a tax haven. Foreign companies with no UK presence could move their HQ here to avoid corporation tax in the country where they make most of their profits.

That's what the Tories want to do.

What would change companies' behaviour would be if consumers enough masse would boycott companies who avoid paying their fair share of tax.

Why should consumers fix the problem? Isn't this the sort of thing we have a government for?

Nick_C

Herzlos wrote: »

That's what the Tories want to do.

Why should consumers fix the problem? Isn't this the sort of thing we have a government for?

1 Not at all. The Tories want low rates of Corporation Tax so that multi nationals will relocate here and pay taxes here instead of elsewhere. It's been a very successful policy. The Corporation Tax yield has increased by £20 billion since 2010, and has created jobs in the UK.

2 The UK acting alone cannot stop the likes of Amazon and Apple from evading taxes. And the idea of all the world's countries acting together in the common good is a naive pipe dream

PS - interesting that you think that the Government should try to solve all our problems and individuals don't matter. No one will ever mistake you for a Tory

daveyjp

antrobus wrote: »

Shock! Horror! Gasp!

Two Labour controlled councils, Sefton Council and Warrington Council, have been caught using offshore vehicles to avoid paying stamp duty to the tune of £12 million. Sefton Council's leader is quoted as saying that "This is a widely accepted tax-efficient way of completing the purchase." So that's allright then.

The original story is from The Times, but that's behind paywall, so here's the Mail clone.
http://www.dailymail.co.uk/news/article-5060535/Jeremy-Corbyn-branded-hypocrite-tax-avoidance.html

Follow the money and its actually a zero sum game for the taxpayer. All it results in is the Council keeping money which it would only be giving back to Treasury.

I’d rather my Council keep money to spend on local services than send it back to Government.

chucknorris

.string. wrote: »

Newcastle 0 Bournemouth 1

I'm not that much of a fan Newcastle Utd, but don't you think league position is more important than the outcome of one particular match? Newcastle are higher than Bournemouth.

kinger101

antrobus wrote: »

That's what the OECD is for.

They call it Base Erosion and Profit Shifting (BEPS), because you have global companies shifting profits into low tax jurisdictions and eroding the tax base of other jurisdictions. There have been conferences.:)

And they've achieved precious little.

kinger101

Herzlos wrote: »

Would you set up a coffee shop that made zero profit, but then go on to talk about how it's your most profitable region in the shareholders meeting?

Anyway, the solution is to charge them based on revenue. Maybe drop the corporation tax entirely and bump VAT up to 30%.

I'm not sure that's the best way forward, particularly as trading income can fall under income tax or corporation tax, so it would disadvantage those not trading as companies (many small shops), or require something more complicated in the tax legislation.

Making all intellectual property rights for the UK market taxable in the UK might be an alternative.

kinger101

daveyjp wrote: »

Follow the money and its actually a zero sum game for the taxpayer. All it results in is the Council keeping money which it would only be giving back to Treasury.

I’d rather my Council keep money to spend on local services than send it back to Government.

The same goes for the localism Corbyn is promoting. Allowing a premium for services to be contracted within the borough, but then realizing it just comes at the expense of UK jobs somewhere else. In fact, it just ends up costing the taxpayer more as it distorts an otherwise competitive market.

antrobus

kinger101 wrote: »

And they've achieved precious little.

The OECD/G20 BEPS Project is a work in progress.

You can read all about it here.
http://www.oecd.org/tax/beps/beps-actions.htm

This sort of thing isn't easy you know. What's your alternative?

antrobus

Nick_C wrote: »

But that could just transform the UK itself into a tax haven...

Some people already regard the UK as a tax heaven, Certainly the Labour innovation of LLCs has allowed all manner of foreign owned corporations to operate in the UK for all sorts of murky purposes. (See Private Eye - allegations that they have been used as money laundering vehicles.)