Large Corporations paying minimal tax

[davidjpowell]

Seems to be in with the press at the moment..

eg - EBay 'pays £1.2m in UK tax' on sales of £800m
BBC News - EBay 'pays £1.2m in UK tax' on sales of £800m

I'm beginning to think that as usual our laws and accounting regime have not kept track with the 'global modernisation'.

I wonder whether a really simplistic approach of taxing sales in our country - which are more visible would not be more effective. So do away with Corporation tax etc., do away with the daft situation of VAT being charged to business then reclaimed, and simply a new purchase tax for any consumer goods sold to consumers in the UK.

Not quite sure what you do about petrol - trade card for businesses so do not pay vat. Sounds dodgy though...

Thoughts?

 

[nick mercedes]

Seems to be in with the press at the moment..

eg - EBay 'pays £1.2m in UK tax' on sales of £800m
BBC News - EBay 'pays £1.2m in UK tax' on sales of £800m

I'm beginning to think that as usual our laws and accounting regime have not kept track with the 'global modernisation'.

I wonder whether a really simplistic approach of taxing sales in our country - which are more visible would not be more effective. So do away with Corporation tax etc., do away with the daft situation of VAT being charged to business then reclaimed, and simply a new purchase tax for any consumer goods sold to consumers in the UK.

Not quite sure what you do about petrol - trade card for businesses so do not pay vat. Sounds dodgy though...

Thoughts?

Getting rid of business rates would be a good start.

And then jailing the CEOs of a few of these tax avoiding corperations.

 

[markjay]

Of course no one should be allowed to get away with not paying due taxes.

However when looking at these firms as a whole we should also consider the number of jobs they create in the UK, both directly and indirectly (i.e. through contracting cleaning services, security, etc etc).

And there would still be government revnues from the employees' IR and NI collected through PAYE.

So infuriating, yes, but on a whole we are still better-off with them than without them?

 

[st4]

Thoughts, Make eBay pay corporation tax on the profits it makes. Same with other banks etc doing clever things to avoid tax. Government makes the rules, looks like the rules do not work in the principle in which they are meant to, so the rules need re wrote so people/corporations pay tax in which the spirit it was meant to be taken

Taxing sales on eBay is silly, most of the goods sold there are 2nd hand. VAT will have already been paid on these goods in their country of origin and import duty paid into the UK if they have originated new from overseas and into here.

 

[PXW]

Large companies not paying very much corporate tax isn't that uncommon and is not necessarily evidence of nefarious behaviour; often HMRC are fully aware and are in agreement - especially where is it leverage or royalties that are bringing down the effective tax rate. It is important to keep an eye on the overall tax take from the economic activity though- it is not tru to say that simply because the entity pays not corporate tax that it doesn't pay any tax. Dependent on its activities, it may actually pay VAT, it will pay payroll taxes such as employers NI, and it generates the income on which it's employees pay tax. It will also pay air passenger transport duty, various excise duties, customs duties on goods imported from outside the EU, climate change levy, possibly landfill tax, stano duty of various kinds, and so on.

Having said that, there is actually a credible economic argument that has been raised a number of times in recent years, for zero corporate tax; in essence, all corporate tax is actually paid by the end user/consumer, as corporates make the required market return on investment on an after tax basis. If corporate tax is zero, then the argument runs that market forces will drive end user prices to normalise at the level that gives an equivalent shareholder return to that earned currently - I.e. prices would fall.

 

[davidjpowell]

Getting rid of business rates would be a good start.

And then jailing the CEOs of a few of these tax avoiding corperations.

I can imagine you would be in favour of that

Thing is I suspect most of the tax avoiding corporations are doing so legally. TO jail them you need to change the rules to make it illegal...

 

[amg_Charged]

I think you will find its called tax planning, take UK money, have your head office outside UK law, this is peanuts compared to immigration, Dole cheats and foreigners getting Nhs treatment without ever paying a single penny in Ni or Tax, one things for sure wont be changed by comments on here...Unfortuantly !!

 

[markjay]

It's beyond me why corporations should pay tax at all.

If the profit stays in the company, no tax should be due.

Once the profits are removed - through salary or dividends - the recipient will pay due tax.

 

[nick mercedes]

It's beyond me why corporations should pay tax at all.

If the profit stays in the company, no tax should be due.

Once the profits are removed - through salary or dividends - the recipient will pay due tax.

I have to pay £1425 a month in business rates and Vat on rent.

You get taxed before you even start.

 

[Charles Morgan]

Of course no one should be allowed to get away with not paying due taxes.

However when looking at these firms as a whole we should also consider the number of jobs they create in the UK, both directly and indirectly (i.e. through contracting cleaning services, security, etc etc).

And there would still be government revnues from the employees' IR and NI collected through PAYE.

So infuriating, yes, but on a whole we are still better-off with them than without them?

Companies that enjoy artificially low tax rates have a competitive advantage over those who cannot organise their affairs in such aggressive ways. Amazon has destroyed numerous competitors who pay rates, PAYE and taxes, while siphoning all their profits to Luxembourg. I refuse point blank to pay a penny to such companies.

The tax system is now absurdly over-complicated and it is time to refine it. Inter-company transfer pricing and IP licensing is just egregious abuse.

 

[markjay]

Companies that enjoy artificially low tax rates have a competitive advantage over those who cannot organise their affairs in such aggressive ways. Amazon has destroyed numerous competitors who pay rates, PAYE and taxes, while siphoning all their profits to Luxembourg. I refuse point blank to pay a penny to such companies.

The tax system is now absurdly over-complicated and it is time to refine it. Inter-company transfer pricing and IP licensing is just egregious abuse.

Removal of some taxes will no doubt help simplify our tax system?

 

[nick mercedes]

However when looking at these firms as a whole we should also consider the number of jobs they create in the UK

They cost us jobs.

Half the stuff on Amazon seems to be shipped in directly from China, most of it is made there.

Ebay is based in Ireland and only employs a few (dozen?) people here, and again most of the stuff on it is tat not made here.

 

[Charles Morgan]

It's beyond me why corporations should pay tax at all.

If the profit stays in the company, no tax should be due.

Once the profits are removed - through salary or dividends - the recipient will pay due tax.

Companies use services like all other taxpayers, benefit from the protection of the law, have rights granted to them as limited companies that individuals are not able to have so should pay like all the others.

 

[amg_Charged]

I have to pay £1425 a month in business rates and Vat on rent.

You get taxed before you even start.

Don't you get small business relief on the rates? And if your vat registered your claiming it back. Paying vat is a way of life we all have to do it, least you could claim back hopefully

 

[Charles Morgan]

Removal of some taxes will no doubt help simplify our tax system?

Remove the exemptions that merely profit those with expensive advice.

 

[markjay]

They cost us jobs.

Half the stuff on Amazon seems to be shipped in directly from China, most of it is made there.

Ebay is based in Ireland and only employs a few (dozen?) people here, and again most of the stuff on it is tat not made here.

Amazon can hardly be blamed for the availability of cheap chinese goods in UK markets. If Amazon didn't import it, someone else surely will.

If eBay are based in Ireland, why do we want them to pay tax in the UK in the first place? They should pay it to the Irish.

 

[LTD]

Ebay has a UK site, like Amazon has etc.

If they operate UK sites then they should pay UK taxes. Corporate and otherwise.

If I buy something on Amazon then I get it shipped to me - tax paid. I do not get any form of UK Customs when I receive the goods. Ergo, they are not imported goods and the profits from them should be applicable to UK tax law.

 

[davidjpowell]

If eBay are based in Ireland, why do we want them to pay tax in the UK in the first place? They should pay it to the Irish.

If the money is earned on sales in the UK morally should the tax revenue go to Ireland or UK? Is it time the tax law caught up with the internet?

20 years ago very few people would buy from a firm based outside the UK as we now do.

 

[nick mercedes]

Don't you get small business relief on the rates? And if your vat registered your claiming it back. Paying vat is a way of life we all have to do it, least you could claim back hopefully

You only get relief on small properties, RVs of less than £12k I think.

Even bus shelters attract business rates, they're ruthless.

 

[nick mercedes]

If eBay are based in Ireland, why do we want them to pay tax in the UK in the first place? They should pay it to the Irish.

Because they earn all their money here, what happens when all retailers off shore and none of them pay any taxes?

This country is run entirely for the benefit of the super rich, and mugs like us pay over inflated taxes to sponser their tax evasion.

A few rich tax evaders either being jailed or killed by angry mobs of taxpayers is in order.