Iain Dale\’s Right You Know

He then used a barrage of statistics to "prove" that Britain has one of the lowest rates of business taxation in the world, when nothing could be further from the truth.

The actual headline rate of corporation tax is really pretty irrelevant. There\’s so much fiddling going on with what is actually a profit for tax purposes that just looking at it being 28%, or 30%, tells you almost nothing.

Have a look here. Corporate taxes as a percentage of the total tax take.

Rank   Countries  Amount  (top to bottom)   
#1   Luxembourg: u20.5%   
#2   Norway: u18.9%   
#3   Australia: u16.8%   
#4   Ireland: u13.1%   
#5   Korea, South: u12.8%   
#6   Japan: u12.2%   
#7   New Zealand: u12.1%   
#8   Czech Republic: u11.8%   
#9   Greece: u10.4%   
#10   Canada: u10.1%   
#11   Finland: u9.3%   
#12   Spain: u9.1%   
#13   Switzerland: u8.8%   
#14   Netherlands: u8.8%   
#15   Slovakia: u8.2%   
#16   United Kingdom: u8.1%   
#17   Belgium: u7.6%   
#18   Italy: u7.6%   
#19   Turkey: u7.1%   
#20   United States: u6.7%   
#21   France: u6.6%   
#22   Poland: u6.3%   
#23   Hungary: u6.2%   
#24   Denmark: u5.8%   
#25   Austria: u5.1%   
#26   Sweden: u4.8%   
#27   Iceland: u3%   
#28   Germany: u2.9%   
  Weighted average: u9.3%    

You\’ll note that, for example, Ireland, which has a much lower headline rate, collects vastly more of its budget from taxing corporations. You\’ll also note that Germany, which has a much higher corporate profits tax rate, collects almost nothing from such corporations.

As I say, the rate is almost irrelevant unless you take account of how you\’re defining profit for tax purposes in the first place.

One thing though: the tax take from corporates in the UK is just under the weighted average. That corporations don\’t bear the economic burden of a tax is another matter, but by international comparisons the UK is in the middle of the pack.

2 thoughts on “Iain Dale\’s Right You Know”

  1. Err, didn’t you just show that the UK’s corporate tax take is slightly below average? In which case, Ian Dale is pretty much diametrically wrong…

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