Should billionaires and multinationals pay fair tax?
- Thread starter JohnD
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Amazon have been avoiding tax with the assistance of the Luxembourg government
Apple have been avoiding tax with the help of the Irish government
Since the problem you describe is caused by countries bidding against each other down by offering sweetheart deals, it's good to see that a unified approach by the 27 insists that state inducements to a few wealthy companies are not permitted. No doubt Luxembourg and Ireland will grumble at not being able to take advantage of other countries. The billionaires have been able to play off one country against another in the past, to the detriment of all.
There's no doubt at all that Amazon and Apple will kick up a fuss, and I expect the US government will lend them a hand. Trumper is bound to say it's not fair that companies should be expected to pay tax. Opinions will differ.
The Murdoch media empire is in a tricky position here. They take advantage of tax-dodging schemes but criticise other companies doing it.
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Never said that.
You are the one the one that said even though Corp Tax rates are less do they raise more than Income Tax.
Your argument as usual just flips and flops.
What is your argument - state it clearly and simply for your own benefit.
Only if they give one. Which they don't.
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Apparently a lot of these "Tax Avoidance" schemes are quite legal. Companies employ accountants to save them money legally. It's tax rules that need changing. (and you can bet your last penny that if the big companies are getting away with it, then a lot of smaller companies are too).
Eh?
Did you mention what you do for a living?
State it clearly and simply for your own benefit
Yes, that's the point.
I fully agree, the tax rules need changing as well as the deals that are done with these businesses
Where wealthy business owners are able to influence political decisions to allow them avoid paying the right amount of tax, laws must be changed to prevent it happening.
Google, Apple, Amazon etc are putting pressure on governments along the lines of: if we set up in your country factories and warehousing in your country we want to be able to get away with avoiding tax.
Uber are the same -using George Osborne and David Cameron to lobby for them.
However, there is a balancing act, we need simple fair tax laws that work and are set up so that HMRC can ensure collection is practical without being bamboozled by heavy weight accountants. There is a case for low taxation and minimal state intervention so that the UK is still attractive to foreign business and investment. One of the reasons UK finance industry does not want to move to France is the complex employment laws in that country.
Im sure at the moment the balance is the wrong way. Does the UK have much to gain encouraging businesses to be based in the UK if the revenue collected is so small?
Judging by what Ive seen of Amazon, it is a truly horrible place to work.
V
vinty
I don't normally have anything positive to say about the EU but they do have point when it comes to tax dodging by multinationals.
A uniform rate of tax for Corporations across Europe should go a long way to stop countries engaging in a race to the bottom by undercutting others to gain advantage.
The Irish government is being taken to court by the EU for failing to collect 13billion euros in tax from the Apple corporation ,they say they haven't done anything wrong yet they allowed Apple to set up a virtual headquarters with no staff and no premises to channel their profits through.
The amount of tax paid to the Irish was around £50 in every million pounds profit, so it is easy why Ireland needed a £7billion bailout from the UK government a few years ago.
If other countries outside the EU were to sign up to a uniform global tax for Corporations then because they had nowhere to hide their profits they would have to pay their fair share and this would be to everyones benefit.
A uniform rate of tax for Corporations across Europe should go a long way to stop countries engaging in a race to the bottom by undercutting others to gain advantage.
The Irish government is being taken to court by the EU for failing to collect 13billion euros in tax from the Apple corporation ,they say they haven't done anything wrong yet they allowed Apple to set up a virtual headquarters with no staff and no premises to channel their profits through.
The amount of tax paid to the Irish was around £50 in every million pounds profit, so it is easy why Ireland needed a £7billion bailout from the UK government a few years ago.
If other countries outside the EU were to sign up to a uniform global tax for Corporations then because they had nowhere to hide their profits they would have to pay their fair share and this would be to everyones benefit.
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In the UK - corporation tax on a scale would work better. Similar to income tax, but in reverse. Say 20% for the first £1M, dropping to as low as 15%. That would of course give big companies an advantage over small companies, but if you moved all corporation tax to something as low as 15%, to better compete with the EU tax havens, then lots and lots of PAYE based employees would incorporate to dodge paying 45%. At 15%, I think we'd have a decent chance of off-setting the short term brexit downsides.
Regarding Amazon, Apple, Google etc (US firms by origin), they are all currently looking to move back to the US and repatriate their wealth.
Regarding Amazon, Apple, Google etc (US firms by origin), they are all currently looking to move back to the US and repatriate their wealth.
D
Doggit
Why not just say that profits made in a country, has to be taxed in that country, and nt transferred to anther countrys "head office". If you want move to a country with a low corporation tax, then that should be allowed, but you've got to base the company there, not just a handfull of staff to justify the transfer of sales and profits there.
Governments need the flexibility of variable tax rates to attract business, and I can't see a problem with that.