BP is forecast to pay about $10bn (£6.7bn) less tax over the next four years as it meets the costs of its huge oil spill in the Gulf of Mexico, hitting the revenues of Britain and the US that receive hundreds of millions of dollars from the company each year.
The shortfall, representing a drop of more than a quarter in BP’s tax payments, is a particular concern for the British government attempting to cut the country’s budget deficit.
Money spent plugging the well, cleaning up the oil, and compensating people who have lost out because of the spill, can be written off against tax, the company believes, reducing the net cost to BP.
Yup, see, the entire thing is simply an exercise in tax evasion. BP is trying to get out of what it righteously owes to the State. We cannot allow this to happen, we must, as I recommended with the banks, change the law so that this abomination cannot happen.
BP must not be allowed to deduct its clean up costs, must not be allowed to count them as a business expense. No matter what the law was before, it is time to change it, it only requires political will.
Otherwise children will die and that\’s what the libertarian extreme right want, so they can eat them.
This was a guest post by Dick Muphry, retired book keeper.