G7: Rich nations back deal to tax multinationals

[JohnD]

WTF has that got to do with UK taxation?

What do you mean?

Have you ever bought microsoft software? And paid for it?

bought, paid, delivered, installed and used in the UK?

earning profits in the UK?

No tax paid in UK.

When you buy a pie at Greggs

cooked in UK, sold in UK, to a UK resident, eaten in UK, generating profits in UK

UK tax paid on those profits

Spot the difference

 

[fillyboy]

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

Yes that's brilliant John, Trumps a nob, Whooppee, Butt what's that got to do with Global CT?

 

[JohnD]

Yes that's brilliant John, Trumps a nob, Whooppee, Butt what's that got to do with Global CT?

it has a lot to do with tax dodgers.

really, you are very dim not to have noticed.

 

[ellal]

When you buy a pie at Greggs

cooked in UK, sold in UK, to a UK resident, eaten in UK, generating profits in UK

UK tax paid on those profits

Yes, recently at a rate of a 'whopping' 5.2% mainly because of the 'Introduction of super-deduction capital allowances'!

 

[fillyboy]

When you buy a pie at Greggs

cooked in UK, sold in UK, to a UK resident, eaten in UK, generating profits in UK

UK tax paid on those profits

Spot the difference

I was told last week that Greggs will be adopting the future Amazon technology and deliver food products by drone. Personally I think t's just pie in the sky.

 

[Vinty]

About time these tax dodgers were held to account.



https://www.thetimes.co.uk/article/irish-facebook-branch-pays-1-per-cent-tax-02ztgstdq

Irish Facebook LOL.
Time the the Pot of Gold at the end of the Irish rainbow was confiscated by the HMRC.

 

[fillyboy]

About time these tax dodgers were held to account.



https://www.thetimes.co.uk/article/irish-facebook-branch-pays-1-per-cent-tax-02ztgstdq

Irish Facebook LOL.
Time the the Pot of Gold at the end of the Irish rainbow was confiscated by the HMRC.

Yes I think the 'leprechaun economics' days might be coming to an end, they'll put up a fight though.

 

[opps]

If we take Ireland as an example of a country that facilitated Apple's effective tax rate of 0.0005%, how will the current rules change their tax dodging?

The Irish allowed Apple to book IP payments to their shell companies based in Ireland, so long as the profits were made outside of Ireland, they were tax free. Apple UK would pay a fee to one of those shell companies for the right to display the Apple logo in UK stores. HMRC lost out, Ireland didn't take a penny. Apple are so cash rich that they didn't need to repatriate those profits to the USA, so the IRS lost as as well.

Oh when I said that Ireland lost out- they lost out on those taxes but Apple, unlike MS or Google, charged the Irish rate of VAT (23%) on all EU iTunes and electronic transfer payments. The two other firms charged VAT at the rate applicable in the EU country of purchase. My mum is Irish, I am not anti-Irish but some thing smells very dodgy.

The likes of Samsung, in S Korea, have to pay taxes on overseas profits regardless of whether they are repatriated or not. The corporation tax in SK is 25%. We are currently at 21% in the UK. If Samsung (UK) pays 19% it knows that it only needs to pay an additional 6% regardless of whether it repatriates those profits. Either way, it will pay a sum total of 25%.

The USA corp rate is 21% but if the money never gets sent back to the USA, there is an obvious incentive to scam countries.

If the USA followed the SK or Japanese model, namely making firms pay taxes whether they off shore profits or not, they would be no incentive to rip off the likes of HMRC so long as our taxes remain lower than those of the USA.

I suspect that the firms hold the profits offshore in the hope of the occasional tax amnesty.

If Biden wants a level playing field, he needs to tax American firms regardless of whether they send those profits back to the USA or not.

 

[Bodd]

Great news

 

[Vinty]

but some thing smells very dodgy

Dodgy is a bit of an understatement.
The EU recently took Ireland to court because the Irish refused to collect 13 billion Euros due in taxes from Apple.
What sort of country is it that refuses to collect taxes due.
The Apple scandal is the tip of the ice berg.

 

[JohnD]

If Biden wants a level playing field, he needs to tax American firms regardless of whether they send those profits back to the USA or not.

US taxes its citizens on their worldwide income, even if it is earned outside the US, paid outside the US, and spent outside the US, and even if the citizen does not live in the US, work in the US, work for a US company, visit the US, or have a home in the US.

So it is very familiar with the concept of taxing worldwide income.

Except for billionaire tax-dodging corporations, obviously.

 

[JohnD]

Except for billionaire tax-dodging corporations, obviously.

I cannot imagine why

 

[opps]

US taxes its citizens on their worldwide income, even if it is earned outside the US, paid outside the US, and spent outside the US, and if the citizen does not live in the US, work in the US, work for a US company, visit the US, or have a home in the US.

So it is very familiar with the concept of taxing worldwide income.

Except for billionaire tax-dodging corporations, obviously.

That is a very good point.

That said, we are talking about corporation tax rather than personal tax.

 

[JohnD]

Yes, recently at a rate of a 'whopping' 5.2% mainly because of the 'Introduction of super-deduction capital allowances'!

that's a higher rate of tax than the richest man in the world pays

"The 25 richest Americans including Jeff Bezos, Warren Buffett and Elon Musk paid a “true tax rate” of just 3.4% between 2014 and 2018, according to an investigation by ProPublica, despite their collective net worth rising by more than $400bn in the same period."