His comments follow the revelation that Barclays has stockpiled billions of pounds of \”losses\” to reduce future tax bills, despite not having made a loss at group level for over a decade. They also come shortly after the pledge by Bob Diamond, Barclays\’ chief executive, for \”banks to be better citizens\”.
He then goes on to repeat the nonsense he spouted yesterday.
I mean seriously, what the hell is this with \” \” around losses?
As an example: I\’ve no idea about the Telegraph\’s finances but I\’m sure that there are some parts of the group that make losses, other parts that make profits. You get to offset one against the other. That\’s certainly true at the Guardian Media Group, is it not?
However, when you start going over tax jurisdiction boundaries then it\’s not quite so simple. You don\’t get to say well, we made a loss in Spain therefore the tax on our UK business is reduced. The loss in Spain gets \”warehoused\” until you\’re making a profit in Spain against which you can offset those previous losses.
So it\’s entirely obvious that you can have losses in an international group, even while having overall profits…..and thus tax credits in places even while having overall profits.
So what is Aldrick doing? Is this simply that he\’s got the wrong end of the stick? Or is he being told to write this nonsense?