10 thoughts on “BBC corporation tax horror story!”

  1. Posted 24/05/2013 at 14:17 | Permalink

    It can be even more difficult and dangerous than you suggest.

    What would happen if Google closed down all its physical operations in UK?

    Google could then simply market and provide its services over the Internet from another country (e.g. Ireland) and take payments from outside the UK as well.

    Google would then pay no taxes whatsoever in UK.

    Is this what our friends in the Labour Party, The Treasury, The BBC and The Guardian really want?

  2. Posted 24/05/2013 at 16:32 | Permalink

    What makes me most angry is that the Labour politicians who are leading the charge on this will either have voted in favour of all these loopholes between 1997 and 2010, or else done nothing in that period to close them.

  3. Posted 24/05/2013 at 16:36 | Permalink

    The BBC nevers allows the facts to get in the way of its aggenda. This is true of economics, business and science (anything to do with climate is a good example). It needs to be turned into a subscription-only service – and those who like its output can buy it.

  4. Posted 24/05/2013 at 16:41 | Permalink

    The Guardian is the last organ to be commenting on corporate tax avoidance.

  5. Posted 24/05/2013 at 16:49 | Permalink

    You want a tax to be taxed?

    The BBC’s coercive and regressive taxes (in the form of the “license fee”) are raised on pain of imprisonment.

    You then want someone to tax that tax?

    As John McEnroe said..

  6. Posted 24/05/2013 at 17:47 | Permalink

    A good point.

    Why on earth is a government body (and the BBC is) being taxed when it itself raises all its dosh as a tax.

  7. Posted 24/05/2013 at 18:27 | Permalink

    The thing is that all of the sales that Google or Amazon makes, in the main come from personal income that has already been subjected to tax. The tax comes not from the company, they can only be an intermediary between those who pay money for the products and the government, that then takes the tax. Put up the companies tax and the company will raise prices to claw back the profits, so that takes more money from the only people who can in fact pay tax, those whose personal income is already subjected to income tax! I have not done that a clearly as I would have hoped but you get the drift.
    We need to have a very, very open discussion about what tax and levies are and where they come from. I think if you took out all tax, except income tax (UK Taxes) I could pay 70% income tax and still be no worse off.

    I posted this on the commentator website about Apple not paying tax originally.

    Daedalus

  8. Posted 24/05/2013 at 19:01 | Permalink

    The BBC of course knows as much about corporate finance as it does about running large IT projects… (and losing the odd £100m)

  9. Posted 26/05/2013 at 18:44 | Permalink

    I am at a loss to see why companies are required to pay tax at . No taxation without representation. Companies can’t vote. Profit is the reward for successful economic activity – why punish it? Government uses the usual highway robbers excuse – I need the money.

  10. Posted 02/06/2013 at 19:37 | Permalink

    @London Calling – Scrapping corp. tax in the long run may turn out to be a very sensible idea, but only if dividends were then treated as what they are – income. Having a lower rate for them creates all sorts of tax evasion and isn’t exactly great for the distribution of income.

    Focusing on Amazon is one thing – Google, however, does make a massive profit. For them to claim that they don’t sell anything in the UK is ridiculous. Google’s profits will be proportional to the VAT collected on sales to UK individuals and businesses. I can see reasons why the corp tax regime doesn’t follow this logic, but there must be a better system than the non-system that currently exists.

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