But that is not to say there aren’t problems with the outcome. Firstly, and most importantly, tax paid has been interpreted literally and cash tax paid is to be used as this measure, which is absurd as cash paid in a year for tax does not relate to profit in a year. I warned EU legislators on this issue when this law was rushing through the parliament and was advised I should accept whatever we get, but this is a poor outcome.
Anyone remember his survey of the amount of tax paid by large corporates? Where he used cash tax paid in the year as the measure of the tax burden? Insisting, for example, that deferred tax should not be used in any manner? Despite the obvious fact that the corporation tax due on this year’s profits is actually paid next year?
Nothing like consistency, eh? Absolutely nothing like it at all…..