The Lib Dems are getting shouted at for accepting donations from companies that don\’t pay much tax:
Official documents show that companies controlled by reclusive Ipswich Town FC owner Marcus Evans have donated more than £530,000 since 2006.
However, records from Companies House show that UK-based companies of the Marcus Evans group paid just £7,757 in tax in 2007, on turnover of £55million and profits of £1.8million in 2007.
There are any number of reasons why the tax bill in one specific year could be so low.
Perhaps they made losses in earlier years which they carried forward? Perhaps they spent a lot of money on R&D? R&D is specifically encouraged by Parliament through a 125% tax credit after all. Perhaps they did a lot of overseas business and that was taxed at a higher rate elsewhere than the UK corporation tax rate?
There\’s other possibilities of course: the most notable one being that reported profits by standard company accounting and reported profits by tax accounting aren\’t the same thing at all.