G7: Rich nations back deal to tax multinationals

[JohnD]

Hooray!

"The G7 group of advanced economies has reached a "historic" deal to make multinational companies pay more tax.

Finance ministers meeting in London agreed to battle tax avoidance by making companies pay in the countries where they do business.

They also agreed in principle to a global minimum corporate tax rate of 15% to avoid countries undercutting each other."

"It was reported this week that an Irish subsidiary of Microsoft had paid zero corporation tax on $315bn (£222bn) profit last year because it was resident in Bermuda for tax purposes."


https://www.bbc.co.uk/news/world-57368247

Encouraging first step towards a global pact on tax avoidance.
But the Conservatives have worked to water it down from the initial plan of a 21% global corporate tax rate.
That would have raised £131 million extra a week for our public services.

Should billionaires and multinationals pay fair tax?

Just like the rest of us common little people?

Or should the tax laws be constructed so they can hide it in tax havens? They're not contributing to our public services.

If a company that doesn't pay tax in, say, the UK, has a warehouse fire, should they expect our taxpayer-funded fire service to put it out? Or should they phone Panama and ask for a boat to be sent?

If the owner of the Daily Wail gets burgled, should he get help from the British police?

Is Richard Branson entitled to use our street lamps, or should he run a cable back to the Virgin Islands?

If Murdoch has a stroke and falls over in the street, should he get one of our ambulances?

 

[fillyboy]

Hooray!

"The G7 group of advanced economies has reached a "historic" deal to make multinational companies pay more tax.

Finance ministers meeting in London agreed to battle tax avoidance by making companies pay in the countries where they do business.

They also agreed in principle to a global minimum corporate tax rate of 15% to avoid countries undercutting each other."

"It was reported this week that an Irish subsidiary of Microsoft had paid zero corporation tax on $315bn (£222bn) profit last year because it was resident in Bermuda for tax purposes."


https://www.bbc.co.uk/news/world-57368247

Encouraging first step towards a global pact on tax avoidance.
But the Conservatives have worked to water it down from the initial plan of a 21% global corporate tax rate.
That would have raised £131 million extra a week for our public services.

Good news indeed (not for Ireland).

Your sentence about the Conservatives (which I can't find in the link) is of course total bollix, lot's of countries fought against the 21% minimum and it was reduced to 15% before we even considered it.
Don't forget Rishi had already made public that that he was increasing corporation tax to 25%.

 

[JohnD]

Your sentence about the Conservatives (which I can't find in the link) is of course total bollix

What makes you think it is untrue that UK's conservative government worked to water it down from the initial plan of a 21% global corporate tax rate?

or are you just spouting nonsense again?

 

[fillyboy]

What makes you think it is untrue that UK's conservative government worked to water it down from the initial plan of a 21% global corporate tax rate?

or are you just spouting nonsense again?

In March this year Rishi Sunak announced he would be increasing Corporation Tax from 19% to 25%
This alone makes a nonsense of your dubious claim that the Tories tried to water down the rate agreed at the G7, does it not?

 

[JohnD]

claim that the Tories tried to water down the rate

Are you attempting to deny that the UK Conservative government worked to water it down from the initial plan of a 21% global corporate tax rate?

 

[fillyboy]

Are you attempting to deny that the UK Conservative government worked to water it down from the initial plan of a 21% global corporate tax rate?

I'm saying it makes no sense based on what Rishi has already committed to on CT, the Press Association seem to think that Rishi will be using the G20 meeting to raise CT up from the 15% they've just agreed.

What tax changes have G7 ministers agreed and what does it mean for the UK? | York Press

Is this a done deal – will these changes definitely happen?

The proposals will now be discussed in further detail at the G20 financial ministers meeting – which will include the likes of China, Russia and India – in July.

It could technically be rejected there but Mr Sunak hinted that there could be scope for actually raising the minimum corporation tax rate at that summer gathering beyond the 15% agreed in London.

 

[JohnD]

1) 21% was originally proposed

"A 21% global tax floor would mean $140 billion more for Europe and U.K., think tanks claim
June 1, 2021 4:29 PM GMT+1"

"The U.K. is the only member of the G7 not to support the Biden proposals," the IPPR report's authors wrote. "This opportunity will likely not come again. The U.K. government should support these proposals for global alignment on corporation tax and prioritize an agreement at the G7 meeting hosted in Cornwall in June."

https://fortune.com/2021/06/01/global-minimum-tax-rate-floor-21-percent-uk-europe/

"Meanwhile, the EU Tax Observatory—an EU-funded tax research group that launched Tuesday—inaugurated itself with a report claiming the EU would collect €100 billion ($122.3 billion) more this year if there were a global corporate tax-rate minimum of 21%. If the minimum rate were 25%, the report said, the extra cash would run to €170 billion, which is more than half of what the EU will actually rake in this year from corporate tax.


"Moving from 21% to 15% would reduce revenues by a factor of two," the Tax Observatory noted."



2) Our Tory government refused to consider it.

Finance Bill: Report: New Clause 23
Division 6: held on 24 May 2021 at 19:21

https://hansard.parliament.uk/commo...ED84C-FF50-43C6-9C48-67A5F8A10988/FinanceBill

 

[JohnD]

I'm saying it makes no sense

I accept no responsibility for the machinations of our Conservative government.

 

[fillyboy]

Ah Hansard, when David Cameron reported that Britons were paying record levels of tax, Ed Balls shouted out in the Commons 'so what' showing a total disregard for the British people and taxpayers.

Of course Ed balls claimed everybody mis-heard him him and the meticulously recorded Hansard notes were 'adjusted' accordingly.

******* Hansard, The Sun are probably more reliable these days.

 

[fillyboy]

The Financial Secretary to the Treasury
(Jesse Norman)
Sharethis specific contribution
The hon. Gentleman advances the extraordinary claim that the UK is the only country among the G7 not to have backed the Biden plan. Will he put in the Library the evidence for that claim?

 

[Notch7]

What has changed the dynamic is the change of US government.

Fillyboy doesn't want to admit this has only happened because Trump has gone and Biden is now in power and is leading this.

Fillyboy was crowing about freeports recently.....cos they help fair taxation

 

[JohnD]

"An Irish subsidiary of Microsoft made a profit of $315bn (£222bn) last year but paid no corporation tax as it is “resident” for tax purposes in Bermuda.

The profit generated by Microsoft Round Island One is equal to nearly three-quarters of Ireland’s gross domestic product – even though the company has no employees.

The subsidiary, which collects licence fees for the use of copyrighted Microsoft software around the world, recorded an annual profit of $314.7bn in the year to the end of June 2020, according to accounts filed at the Irish Companies Registration Office.

The company’s profits jumped from just under $10bn in the previous year and compare with Ireland’s 2020 GDP of €357bn ($433bn)."

bunch of tax-dodgers.

 

[fillyboy]

What has changed the dynamic is the change of US government.

Fillyboy doesn't want to admit this has only happened because Trump has gone and Biden is now in power and is leading this.

Fillyboy was crowing about freeports recently.....cos they help fair taxation

Eh?

 

[JohnD]

Eh?

Donald Trump.

Tax-dodger and friend of tax-dodgers.

"Donald J. Trump paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750.


He had paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made."

https://www.nytimes.com/interactive/2020/09/27/us/donald-trump-taxes.html

 

[fillyboy]

"An Irish subsidiary of Microsoft made a profit of $315bn (£222bn) last year but paid no corporation tax as it is “resident” for tax purposes in Bermuda.

The profit generated by Microsoft Round Island One is equal to nearly three-quarters of Ireland’s gross domestic product – even though the company has no employees.

The subsidiary, which collects licence fees for the use of copyrighted Microsoft software around the world, recorded an annual profit of $314.7bn in the year to the end of June 2020, according to accounts filed at the Irish Companies Registration Office.

The company’s profits jumped from just under $10bn in the previous year and compare with Ireland’s 2020 GDP of €357bn ($433bn)."

bunch of tax-dodgers.

Which is something I've referred to many times, in fact I recall many remainers shot me down when I referred to Irish taxation as a reference to tax havens, headline taxation 12.5%, real 2% for the big companies.
But tell me John, WTF has that got to do with UK taxation?