However, a Reuters analysis found that
large corporations in the UK now pay less
corporate income tax than a decade ago
even though profits have risen sharply.
According to one measure compiled by the
Office for National Statistics, overall annual
corporate profit has risen 65 percent
since 2000, to 329 billion pounds ($532 billion)
last year. In the same span, the amount
of corporation tax paid by large companies
fell, to 21 billion pounds, down 21 percent
or 5 billion pounds since 2000/01.
OK, so it\’s not quite Ritchie but he\’s on the bandwagon. There\’s a number of problems with this of course.
1) They are comparing tax paid by big business with total profits in the economy. Has there been a structural change in the size of companies? I dunno: but it\’s something that does need to be known.
2) You might have noticed that there\’s been a certain amount of globalisation. Meaning that at least some large UK companies have been making their profits elsewhere. And paying tax elsewhere.
and cuts in government spending make
tactics like those used by multinationals
such as Google, Amazon and Starbucks increasingly
“What we’re seeing is a scaling up overall,
over the last 10 years, of tax avoidance,”
said John Christensen of the Tax Justice
Network, which campaigns on tax issues.
“It has become a much bigger issue.
Successive (UK) governments have been
sending out strong signals that they were
going to be fairly lenient in their attitude
No John, no. The EU has insisted that successive UK governments cannot, may not, are absolutely forbidden, from taxing those internet companies who are obeying every jot and tittle of EU tax law. By treating the Single Market as, you know, a single market.
Ritchie promises us much more in the Mail. What\’s the betting that he actually manages to quote even this paper wrongly?