The Labour MP has been one of the fiercest critics of tax avoidance by companies such as Starbucks, Google and Amazon. However, she is likely to face questions over the limited tax paid by Stemcor, the steel trading company in which she owns shares and which was founded by her father and is run by her brother.
Analysis of Stemcor’s latest accounts show that the business paid tax of just £163,000 on revenues of more than £2.1bn in 2011. However. it is not known whether the company – which made profits of £65m – used similar controversial tax avoidance measures criticised in the past by Mrs Hodge.
Stemcor’s tax bill to the exchequer equates to just 0.01pc of the revenues it booked through its UK-based business. In accounts filed with Companies House, Stemcor revealed that despite generating about one third of its revenues in Britain, its UK tax contribution made up only 2.7pc of the tax the company paid globally.
Stemcor was founded by Mrs Hodge’s father Hans Oppenheimer more than 60 years ago.
I have absolutely no doubt at all that the company pays every single penny of the tax that is legally due.
Which is actually the problem of course. Any explanation of how it has indeed paid every penny due will end up explaining how the corporate tax system works. And thus explain how Starbucks, Google, Facebook and all the rest are indeed paying every penny that is legally due.
0.01% of turnover in tax eh?
Sure, tax is due on profits. International companies pay tax in many places, not just the UK. We know all of this: but that\’s what makes it so lovely. The headline figures that are being used to bash every one else can be explained in exactly the same way as here.
I look forward to Ritchie\’s explanation of why this is different, of course.