Tuesday, 23 December 2014

Corporation Tax

We are currently losing billions and billions of pounds in Corporation Tax every year because other countries have lower tax rates. Amazon, Starbucks etc pay no CT at all.

Ok so lets look at things differently. Big corporations pay their taxes in countries where the %age is advantageous to the company ie why pay 50% here when they can pay 40% elsewhere (not the real figures).

What George needs to do is make those companies want to pay their taxes here.

So surely if we set our corporation tax at 30% then the big boys will be falling over themselves to pay taxes here. Not only that but other companies who don't have offices in the UK will also want to take advantage of the lower tax rates.

OK so we will not get all the taxes we should now get, but we will get a lot and possibly a lot more on top. 30% of something is better than 50% of nothing.

It’s a win win situation, No?

So now I have sorted this out can I be the next Chancellor of the Exchequer, well I have more qualifications than George ‘the Nob’ Osborne.


John said...

Hi Maffi,
Can't help feeling you've set this up to get this response, but here goes anyway.

What happens when the competitor countries reduce their tax rates to attract the non-tax payers back?

Do we reduce our rates yet again? and if we do does it not all become a race to the bottom in which, at the end of the day, the only winners are the corporations and screw the rest of us.

What needs to happen is to make sure that companies pay tax in the countries where they earn the money.

One way of doing is for a transaction tax to be introduced. Another way is for the revenue generated by the company to be estimated and tax charged on that (not what they say they earned in their cooked books). If the company don't like the estimate then, after paying the tax, they can appeal and prove the money was earned in another country. If the appeal is successful the tax paid is transferred to the country where they say it was earned.

Merry Yule Tide
& Happy Guinness drinking


Richard said...

Just for the record the current mainstream rate of corporation tax is 21%

Richard NB Pendle Warter