Joy with Ritchie

I am delighted that the EU have decided to look at this now it is in operation to see if it violates an old friend of this blog, the EU Code of Conduct on Business Taxation, which dates from 1997. That code may be ‘soft law’ i.e. it amounts to pressure on states rather than firm legal requirement, but it has always worked to date.

I suspect the EU is right on this issue: this is an abusive tax measure intended to relocate business without consideration for the economic substance of what is actually happening in the underlying activity and if so then it is abusive.

It would be good if they considered Osborne’s controlled foreign company rules in the same light, but it may be hardeeftar.

Puzzling really. EU law is what made Vodafone’s Luxembourg profits untaxable in the UK under the CFC rules. Makes it illegal (yes, explicitly illegal) to tax interest payments (Boots) or royalties (Starbucks) to other EU or EEA/EFTA companies.

Ritchie spits his dummy out over those and blames them all on domestic law, never acknowledging the EU influence. But, you know, what’s reality or the law got to do with anything when you’re writing polemic, eh?

3 thoughts on “Joy with Ritchie”

  1. “But, you know, what’s reality or the law got to do with anything when you’re writing polemic, eh?”

    Works though, doesn’t it? Watch any TV political discussion & Richiebollocks is established fact under sporadic attack by some pretty unconvincing arguments. Harperson holds the field, triumphant in the same cause, in Commons committees .
    What the honourable get for playing the ball, not the man.

  2. Tim, I wish you would remember that Mr Murphy is an independent voice of advocacy on behalf of social justice movements who are kind enough to donate to his bank account in order to help him speak independently, not like the shills and hacks who are paid to churn out propaganda by the Right Wing, and treat him with the respect he deserves.

  3. It turns out that Britain taxing dividends paid in by EU subsids violated EU Law – real law; not soft law – but I didn’t hear the Hoorah from Ritchie. Turns out also that the UK’s Transfer of Assets regime may similarly violate EU Law I; again, no “praise the Lords in Strasbourg” from Ritchie. However, the expression of an opinion that he likes proves for certain all he has ever said about the EU and its wonder. TIT

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