The crass comments of Boots’ Monaco-based CEO, that a Labour government would be a “catastrophe”, is in fact a gift, a perfect example of the kind of “predatory” capitalism Miliband has condemned in the past. A fine old Nottingham company seized by private equity, used to pay fair tax, but now it’s nominally in Switzerland, it pays a fraction of what it did. Labour should belt out this tax avoidance theme.
Sigh, the tax is being paid by the people who receive the interest rather than upon the profits in the company. It’s not actually obvious that any less tax is being paid: theoretically it could be more.
Tax is a big vote-winner. How can high-street chemists who pay their tax compete fairly with Boots who doesn’t?
Umm, because corporation tax is paid on hte residula, the profit? Which is the result of the competition? So, by the time this tax bill is issued they’ve already done the competition thing?
How can retailers compete with Amazon, or cafes compete with Starbucks?
Neither pays tax because, to a reasonable level of accuracy, neither makes a profit.
When I recently asked Michael Heseltine what he’d do about the avoiders he was unequivocal: “Go after them! How many gunboats have Amazon got?” If they won’t pay up, they have warehouses that can be seized.
It quite specifically says, in both domestic and international law, that those warehouses don’t lead to a corporation tax liability. Seriously? Seizing something against a bill that doesn’t exist?
Labour should use one of its great assets – the grand inquisitor Margaret Hodge – to head up a new Office of Tax Responsibility to oversee HMRC’s pursuit of tax.
Another Murph idea. Happily Hodge La Dodge would have to resign from Parliament if this happened.
Richard Murphy of the Tax Justice Network, says Osborne’s gestures towards getting cash back from tax havens have often had the opposite effect. Murphy estimates that cutting corporation tax 28% to 21% has meant £9.4bn less was collected than the Office for Budget Responsibility forecast in 2010. Meanwhile, some £119bn a year goes missing in tax evaded, avoided, unpaid and cheated.
And that’s just ridiculous. He’s been whining about tax that should be owed according to his calculations. The cut in he headline rate has obviously reduced the amount that is not paid by his calculations. Can’t have it both ways matey. Complain about avoidance reducing and then that tax collected is falling.