Interesting tax claim

Microsoft Ireland’s accounts show the computer giant made £2.3bn from hardware and software in the year to June 2015, but its UK arm paid a poultry £16,9million in corporate tax.

From the Mail’s front page.

Just paying chicken feed, aren’t they?

13 thoughts on “Interesting tax claim”

  1. MS Ireland’s corptax of £400m-ish? MSUK’s profit of £300m-ish? So, trans-national company makes more money in one country than another country. Film at ten.

  2. Was talking to an IT infrastructure guy about 4 years ago. His firm, in the UK, was buying all their Microsoft licences, desktop and server, from an Irish reseller, as they could negotiate a better deal.

  3. jgh,

    > trans-national company makes more money in one country than another country

    But the UK has a population 14 times greater than Ireland. Population isn’t necessarily correlated with profitability, but it would warrant further investigation.

    Mandatory xkcd link: Correlation doesn’t imply causation, but it does waggle its eyebrows suggestively and gesture furtively while mouthing ‘look over there’.

  4. And I’ll wager that most of the people who kick up a fuss about that also vote for us to remain in the EU without realising the inconsistency.

  5. That article is a) complete arse-piss b) kind of ignores EU law c) completely glosses over the extent to which HMRC examine transfer pricing agreements and d) quotes the TJN. On those four grounds alone I think it can safely be deposited in the round filing cabinet

  6. £2.3bn . . . .£16,9 . . .

    Wait – did they mix up decimal marks, in the same sentence?

    And as you always have to ask them – when you say ‘made’ do you mean ‘profit’ or do you mean ‘sales’ Because the two are very different things.

    16.9 million out of 3% (a fair starting point for assuming what a company’s actual profit margin is) of 2.3 billion gives us a tax rate of around 24%.

    I don’t know much about corporation tax, let alone what the rates are over there, but for *personal income tax* 24% would be a pretty decent deal here (at those amounts it would be 60%)

  7. “But the UK has a population 14 times greater than Ireland. Population isn’t necessarily correlated with profitability, but it would warrant further investigation.”

    I don’t wish to be rude to you mate, but given the huge publicity their tax affairs have garnered, what makes you think there hasn’t been any?

  8. Bloke in Costa Rica

    Agammon, nominal UK corporation tax is 20%. The Mail has a nasty habit of allowing its thicker readers, of which there is a great multitude, to believe that the tax is levied on revenue, not profits.

    Fuck me, there’s a preview. ¡Loud hüzzåhs!

  9. Fuck me, there’s a preview. ¡Loud hüzzåhs!

    Huzzah!

    I did attempt to explain to OGH what he might need to do to reinstate it, so it looks like he found someone that understands nerdspeak 🙂

  10. No, it’s a plug in. Which stopped working because it needed to be updated. Idiot stupidity and not on my part.

Leave a Reply

Your email address will not be published. Required fields are marked *