Three cheers for the Chancellor : Tue Nov 06, 2012 12:26 pm  

George is reported in this morning Times as having started to build an international consesus on mutli-national tax avoidance. Something Labour weren't interested in doing in 17 years.

May I suggest that the international approach starts by removing tax deductions for:

Royalties paid to entities outside the border of each country;
Likewise for interest to lenders based outside a country;
Likewise management charges, etc.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 12:31 pm  

Don't get too excited, as was pointed out yesterday by our eminent journalist admin, the soundbite that was reported yesterday did not reflect in the content of the press release, in other words it had a great title but nothing of substance to back it up.

You'd be forgiven for thinking that it was a diversion tactic from some other, worse news.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 12:54 pm  

Thing is though, those three suggested removals can all be valid expenses to a business and therefore valid for tax deductions. How much should be the question, not if or if not.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 1:07 pm  

Richie wrote:

Thing is though, those three suggested removals can all be valid expenses to a business and therefore valid for tax deductions. How much should be the question, not if or if not.

But, the issue is that multi-nationals are not paying adequate tax in certain jurisdictions in which they operate (and no way proprtionate to the revenues they earn in those jurisdictions). These are some of the main devices they use to avoid paying their "fair share" along with flow-through companies in tax havens.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 1:10 pm  

Dally wrote:

But, the issue is that multi-nationals are not paying adequate tax in certain jurisdictions in which they operate (and no way proprtionate to the revenues they earn in those jurisdictions). These are some of the main devices they use to avoid paying their "fair share" along with flow-through companies in tax havens.

So you think the solution is to make all multi-nationals pay more than their fair share?

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 1:29 pm  

Richie wrote:

So you think the solution is to make all multi-nationals pay more than their fair share?

Paying their 'fair share' – ie what companies that do pay tax pay – would be a start.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 1:52 pm  

Mintball wrote:

Paying their 'fair share' – ie what companies that do pay tax pay – would be a start.

I'm not aware of anyone saying it wouldn't be.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 1:59 pm  

I can't wait until someone asks Osborne whether he's checked the legality of any Anglo-German bilateral tax treaty under EU competition laws.

Given the actual issue he's attempting to address, wouldn't it have made sense to first look to strike an agreement with the likes of Ireland or Leichtenstein?

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 2:17 pm  

Richie wrote:

I'm not aware of anyone saying it wouldn't be.

I just thought I'd make sure.

Re: Three cheers for the Chancellor : Tue Nov 06, 2012 2:57 pm  

Richie wrote:

I'm not aware of anyone saying it wouldn't be.

Well, it may we just a matter of detail, but I think the Starbucks spokesman said they were sure paying nothing in the last two or three years was their fair share.

So yes, Starbucks are not saying they shouldn't pay their fair share. Presumably as long as that share is nil.