Mr Elphicke, a former tax lawyer, said: ‘Tax avoidance isn’t just a problem with big corporations. It’s also a problem with big unions who bankroll the Labour Party.
Sadly, no, because he is at least conversant with the law. It’s pure
political opportunism lying therefore in Elphicke’s case, not ignorance.
Labour’s biggest union donors pay nothing in corporation tax despite making millions on their investments, new figures reveal today.
So, why don’t they pay any corporation tax then?
Instead they exploited an obscure provision in the law which allows them to offset costs such as sick pay, accident compensation and employment tribunal costs against their income.
Because they don’t owe any.
Corporation tax is paid upon profits, as we know, not upon income. Thus, if they spend the income of the union on doing things that unions ought to be doing there’s no profit and thus no tax.
There’s nothing terribly difficult about all this, is there?