As the Guardian notes this morning, anger about large corproations not paying tax is growing. Ebay and IKEA are the latest to attract attention. I confess to involvement in the first story, having advised the Sunday Times on it, and the latter is not particualrly new – having been featurfed on this blog a number of times before – but the point is that the appetite for this story is not going away. The awareness has now been created that there is one rule for large mutlinational companies trading in the UK and another for smaller, local companies that are based in the UK and quite probably trade nowhere else.
What that means is that the awareness has been craeted that in their desire to open the UK for business the Tories have given the clear indication to multinationals that the UK tax system is for them an honesty box system where if they\’d like to pay some tax that would be nice, but if not, well, don\’t worry. The Tories dedication to creating a territorial tax system – where no questions are asked about what happens outside the UK – is the cause of this change in culture.
It\’s the damn EU rules.
The UK government cannot change them. It\’s not even tax avoidance: this is what the EU wants companies to do.
Dang, when will he get the darn point?