Do any of the big multi-nationals pay tax in the uk?
- Thread starter joe-90
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I really would not worry about corporation tax too much.
The big companies like those mentioned all charge VAT on their services so the govt get their huge percentage of tax income from these companies operations.
Attempts to get corporation tax would likely be ineffective. Accountants at the companies could easliy hide profits in the accounts if forced to do so by an iminent tax bill so the govt turn a blind eye otherwise the world money markets would be a mess as companies would fail to declare their profits to shareholders and the financial markets would collapse yet again. You have to think of a much bigger picture.
The big companies like those mentioned all charge VAT on their services so the govt get their huge percentage of tax income from these companies operations.
Attempts to get corporation tax would likely be ineffective. Accountants at the companies could easliy hide profits in the accounts if forced to do so by an iminent tax bill so the govt turn a blind eye otherwise the world money markets would be a mess as companies would fail to declare their profits to shareholders and the financial markets would collapse yet again. You have to think of a much bigger picture.
But do they really pay it Joe? There wont be a company in this land in private hands that does not bend its accounts or use tax reduction schemes to reduce the exposure to corporation tax.
If there is then they have the wrong accountant.
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The answer is simple. If an accountant finds a scheme to reduce tax by a set percentage (10- 20%?)- then they should be forced to run it past the IR who will say yes or no as to its implementation. The reality is that business backs government and government does as it's told.
Why does no one seem to realise that these companies and Jimmy Carr etc. are taking advantage of the rules which have been set up by the wealthy precisely for this purpose - so they don't have to pay tax?
Whilst we have tax havens within the British Isles and former territories there isn't really much point complaining.
Whilst we have tax havens within the British Isles and former territories there isn't really much point complaining.
The only real answer is to abolish all income based taxes, both personal and corporate, and move to a purely consumption tax based model.
VAT may well then need to be 30 or 40% and levied on all purchases, but if income tax and NI are abolished then who cares?
Then it becomes much more difficult to avoid paying taxes, your taxes are based on the resources you consume, illegals and visitors to the country would then pay towards it's upkeep, and companies both big and small will come here and employ more people to avoid corporation taxes elsewhere.
Income based taxes, especially those where tax rates increase with increasing earnings or profits are nothing more than a punishment for hard work and success.
VAT may well then need to be 30 or 40% and levied on all purchases, but if income tax and NI are abolished then who cares?
Then it becomes much more difficult to avoid paying taxes, your taxes are based on the resources you consume, illegals and visitors to the country would then pay towards it's upkeep, and companies both big and small will come here and employ more people to avoid corporation taxes elsewhere.
Income based taxes, especially those where tax rates increase with increasing earnings or profits are nothing more than a punishment for hard work and success.
Answer to what?
As far as the powers that be are concerned, there isn't a problem
The poor pay for everything and the very wealthy keep most of their income by avoiding tax by using the methods set up for that purpose.
Only up to a certain level.
Rubbish.
The top 1% of earners in the UK pay almost 30% of all the income tax the government receives.
Another 35% of the total tax take is paid by those in the higher rate band.
Overall, 90% of all the income tax is paid by the top earning half of the workforce.
The poor don't even pay enough tax to cover the bill for Housing Benefit.
http://www.thisismoney.co.uk/money/...2012-Top-1-earners-contribute-income-tax.html
Poor is relative.
I was not meaning higher earners but THE RICH.
How much wealth do this top 1% own?
There are a lot of derogatory comments following the article in your link.
I was not meaning higher earners but THE RICH.
How much wealth do this top 1% own?
There are a lot of derogatory comments following the article in your link.
E
EddieM
The IR are not there to make tax laws, but merely enforce them and collect tax. If tax is being avoided, then that is a problem with the tax laws, none of these companies have been accused of evasion, simply using tax efficient countries through which to channel their profits.
Immoral - certainly seems so.
Illegal - No.
Simply change the law to avoid the worst of the avoidance. It'll never be watertight.
It's irrelevant how much wealth a "rich" person has earned. Why should any one person pay a hundred times as much as another into the system, when they're actually receiving far less from it in return.
A "rich" person is likely to have substantial savings and so wouldn't be able to get benefits if they lost their job. They are far more likely to pay for their own private healthcare and so are less of a burden on the NHS. Their kids are more likely to be going to private schools, so they're getting no benefit from the education system. They probably don't get pi**ed and get into fights on a Saturday night, so they're less of a drain on police, courts, prisons and legal aid budgets.
On top of all that, they will almost certainly have bought a big house, and paid more in stamp duty than many people pay in a lifetime of income tax.
It's not tax avoided by the "rich" which is the problem, it's the bone idle scroungers at the other end of the scale with their unassailable sense of entitlement which is bleeding this country dry.
Because they 'earn' a thousand times as much ?
If you disagree with that principle I have no answer.
I don't disagree with the latter.
However, the thread was about tax 'avoided' by the above companies and, as per EddieM's post, I have been trying to point out that it is NOT 'avoided' but the system is intentionally designed for that very purpose.
Should you 'earn' enough to pay a lot of tax then you may live in Jersey and we will waive the demand.
Cameron did not state that these companies will be pursued for the amounts (obviously); he said the rules will be changed.
Don't hold your breath. The fuss will die down and be forgotten.
You obviously agree with the system.
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