Because he doesn\’t seem to grasp even the basics of business organisations:
Any comparison of the Prince’s direct (income tax) and indirect (VAT) tax contribution with that of an ordinary citizen is difficult, but statistics provide some food for thought. The most recent government statistics show that for 2011/12, direct and indirect taxes added up to 36.6% of the income of the bottom 20% of the UK households, and averaged at 34.6% of the income of all households. The £4.426 million tax payment by the Prince amounts to 23.2% of his income.
So now we know where Austin Mitchell\’s numbers came from.
As The Prince already pays income tax on the Duchy’s surplus, the Duchy does not pay Corporation Tax. If the Duchy also paid Corporation Tax, The Prince would effectively be taxed twice on the same income. Only companies pay Corporation Tax; many other large organisations which are not companies pay income tax.
Yup. Effectively the Duchy is taxed as a partnership with one member.
And partnerships are taxed, rightly, on net income, not gross. The Prince deducts the cost of being the Prince from his income before paying 45% income tax on it. This would be true of an accounting partnership, would it not?
In fact, isn\’t this exactly the way that Murphy Deeks Nolan was taxed of old? Isn\’t it, in fact, exactly the way that Richard Murphy\’s currently extant accounting practice is taxed? Gross income minus expenses to give net income subject to income tax? In fact, isn\’t it how Prem Sikka\’s outside income is taxed? Fees for speaking/writing minus costs of speaking/writing to give net income which is taxed?
What tossery is this?