My God! Those Bastards At Glencore!

Glencore was a 400-strong partnership until it became a stock market listed firm a couple of years ago. As such it paid no corporation tax.

Isn\’t that just disgusting of the dirty little tax evaders?

A not a corporation pays not corporation tax.

What will the bastards think up next?

In entirely unrelated news Philip Inman is a poopy head.

3 thoughts on “My God! Those Bastards At Glencore!”

  1. Um, wouldn’t the fact that it was a partnership (under UK rules anyway) mean it the owners paid no less tax than if it was a corporation, quite possibly more?

    If the taxable profit was say £100m, and that was split equally between 400 people, thats £250K each. Pretty much all of that would be taxed at least at 40%, a fair chunk at 50% (as was). If on the other hand it paid corporation tax at 28%, the shareholders might decide to pay out a smaller proportion of the remainder as dividends. In which case the income tax bills of the shareholders would be lower, potentially zero if they all left their money in the company for a rainy day, or a lower tax regime.

    My guess is that he wants to be able to take both corporation tax and income tax off the same headline figure.

  2. Jim // Sep 11, 2012 at 3:02 pm

    Depends upon the relative tax rates – during the time they were a partnership I would assume that the total tax payments were less than a similar corporation would pay (or at least the combined tax payments/regulatory burden for that sort of organization was less) and the decision to shift into corporate form had to take the difference in tax burdens into account.

Leave a Reply

Your email address will not be published. Required fields are marked *