The Treasury Committee of the House of Commons issued a call for evidence on Tax After Coronavirus (TACs) shortly before the summer recess, with submission requested by 28 August 2020. I have on behalf of Tax Research LLP, and the Tax After Coronavirus (TACs) project that it runs, submitted evidence in response to that call.

That submission is here. Since the whole submission is 13,000 words it is not possible to summarise it all in a post.

Ahem:

Jon Davis says:
August 28 2020 at 9:36 am
From your summary.

“the UK should consider removing the exception from filing a corporation tax return provided to companies who claim to trade only outside the UK.”

You’ve misunderstood this issue. There is no exemption from filing a UK tax return for a UK company which trades only outside the UK.

I suspect you vaguely half-remember the possibility of a UK company electing to exempt profits (and losses) of foreign branches and you’ve become confused by it. That exemption doesn’t mean the company doesn’t need to file a corporation tax return, it still does. I hope you haven’t gone in to too much detail on this in your report, it will make it look like you don’t really understand what you are talking about.

I can imagine someone at HMRC saying “What’s he on about? There is no exemption. He’s suggesting rule changes and doesn’t even know what the rules are!”

Tee hee.

14 thoughts on “Oooopps”

  1. Bloke in North Dorset

    13,000 words of Spud speak! Pity the poor sod that’s got to plough through that and try to make sense of it for the committee.

  2. Ha – very first para is a lesson for HM Treasury in the principles of MMT.

    And I see the piss-taking fat fvcker has the absolute effrontery to put (c) Tax Research LLP at the foot of each page. Which is really rich given his propensity to breach copyright right, left and centre “in the public interest”

  3. And the obligatory plug:

    The following data relates to the year 2013 and shows this relationship for 175 countries and was included in my book ‘The Joy of Tax’ (Random House, 2015):

  4. So, in the ten years he’s been going on about the tax gap, some £1.2 trn of tax has been ‘dodged’.

    Where is this money?

    Answers that refer to ‘big piles of money in the Bahamas’ will be scored zero.

  5. Dennis, Odin's Tax Collector

    Jon Davis presses him on the issue and someone digs up the transcript of what Harra said, and

    Spud got it wrong.

    Here’s what Harra said:

    Q247 Mr Bacon: So you mean that they trade in Germany, and their customer base is German-or perhaps they export and their customer base is overseas-but they do so as a UK-registered company?

    Jim Harra: They will be on the UK register of companies.

    Q248 Mr Bacon: But so long as none of the activity takes place in the UK, they don’t attract any liability for tax in the UK.

    Jim Harra: That’s correct.

    Spud then triumphantly declares:

    I do not make things up

    What Spud missed was, of course, the Harra simply confirmed that the activity wouldn’t a tax liability in the UK. What he didn’t confirm (or say) was that the companies were exempt from filing a tax return.

  6. @ Dennis
    Quite: and they were only exempt from paying UK tax because German tax rates are higher than those in the UK. Profits remitted to the UK are taxable at UK tax rates subject to relief in respect of overseas tax already paid.
    I am not up-to-date on the rate of tax relief for bodies hanged at cross-roads who are thereby disqualified from Valhalla but I am pretty confident that it does not create an exemption from filing a tax return.

  7. I see his report was submitted “on behalf of Tax Research LLP” which is of course just him

    Pretentious twat.

  8. I’m disappointed – i was hoping that his submission would be in crayon or green biro. I suspect apart from getting all his facts wrong the document will be riddled with his usual spelling mistakes, the great potato being too perfect to use spellcheck.

  9. “I see his report was submitted “on behalf of Tax Research LLP” which is of course just him”

    Don’t forget the immense contribution of the other LLP member, his ex-wife……..the contribution being that without her name on the books he would be able to have an LLP at all.

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