Economy & Banks

^ & ^^ reason I asked it as a question, don't know the answer!

Google makes billions from advertising in the UK. They transfer money to ireland where there is much less coporation tax. Then to banks in the cayman islands where there is zero tax. many companies use this route (said Richard Murphy)

This is the sad truth of taxation and the balancing act it needs to be with enticing new business into the UK.

All regions have different tax laws which means a skilled tax accountant can easily reduce a tax liability by cleverly exploiting the grey areas.

So you mention domestic tax on foreign earnings in the States, tax laws vary by state too and specific states pay less tax on foreign earnings than others.

Look at Delawares incorporation records for instance.

What can you do about it?

Nothing.

Try to spend your money close to where you earned it with people that will use it within your community.

Try to spend your money close to where you earned it with people that will use it within your community.

This is good advice. So use local shops and farmers markets for food rather than supermarkets, independent shops rather than chains for clothes, lfggs classifieds rather than ebay?

Farmers markets and tax are not something I would put in the same sentence.

#IknowIjustdid

...and i didn't

It's kind of implied in a conversation about tax.

Tenuous leap Andy?

Really?

Calibri font...

Really?

On the point of tax evasion and how this affects the economy, farmers who may not declare eveything they make at the farmers market is really nothing compared to the massive sums the state loses from multi-national companies who exploit tax havens and loopholes

"The difference between avoidance and evasion is the thickenss of a prison cell wall" - Dennis Thatcher.

This is the sad truth of taxation and the balancing act it needs to be with enticing new business into the UK.

All regions have different tax laws which means a skilled tax accountant can easily reduce a tax liability by cleverly exploiting the grey areas.

So you mention domestic tax on foreign earnings in the States, tax laws vary by state too and specific states pay less tax on foreign earnings than others.

Look at Delawares incorporation records for instance.

What can you do about it?

Nothing.

Try to spend your money close to where you earned it with people that will use it within your community.

Tax avoidance is an art form, as much as an art form as local dealings that don't even go through the books.

The sad part is companies rules the roost and if they were treated the same as all the small to medium businesses in the UK they would pay alot more, the rich get richer...

it only gets my goat as i have to deal with the social services from time to time and have seen so much taken away from the really poor and the amount they need is so small compared with the tax avoided by the rich. un-avoidable but not surprising

Yet this inequality could be dealt with, the loopholes closed, with political will but the politicians have strong links to the City/Wall street etc and the political parties rely on donations from these companies. This is one of the points made by the Wall st/St paul protesters

It actually makes my blood boil.

My tax bill hasnt gone down. I still get tax deducted at source. Why should services I use be affected by goverment defecits that were nothing to do with me?

Current government is so fucking toothless that it wont try to collect the money its owed from big business but will happily put the pinch of me and the people around me.

I know this might make you think I am a twat but in this sense I supported the riots. If the people in suits can steal with impunity why cant those in hoodies?

How would you make Google pay?*

With Google it's all pixels and paper profit. There is zero real cost involved in having the advertising originate elsewhere with a lower or zero tax rate. It's not like they have a huge bricks and mortar operation here that they cannot cost-effectively move. Just an office or two. Introduce some measure that takes 40% off money before it's moved to Ireland or something and they will just flick a switch somewhere and that money will never have been in the UK in the first place.

As it is, it's cheap for them to operate here, so they are paying business rates and employers NI, as well as paying high salaries to UK employees which themselves attract 40 and 50% tax rates.

*Genuine question, not trolling

Good question BQ.
The answer is that there would need to be an international agreement which ensures that there is no advantage in transferring money to the Cayman Islands because by such an agreement all countries would have to claim the same amount of tax.

I know this might make you think I am a twat but in this sense I supported the riots. If the people in suits can steal with impunity why cant those in hoodies?

Why would you "support" the riots when it's still other people who are getting what they want and not you? The real day of revolution comes when the tax payers start rioting, the ones with jobs and mortgages and families.

Support is a loose term, will we substitute understanding instead of support?

Dammit.

Part of me wanted the summer to be a call to arms for people tired of paying too much tax and working hard and having the goalposts moved every year by the chancellor.

What actually happened is some yoot worked out if more people are commiting crimes at any one time than there are cops the chances of getting caught go down.

Unless you post a photo of yourself on facebook nicking stuff.

The riots were initially about Police/race relations in Tottenham then an excuse for looting and teenage rebellion. Not a critique on national fiscal policy

The occupy movement IS about national/international fiscal policy

bazschmaz, you should read the book called Millennium People by J G Ballard. It's about middle class people rioting and bombing the shit out of London and essentially trying to bring down society, you might find it inspiring.

Ha ha...

Dangerous ground reading anything vaguely subversive lest the cops kick my door down and drag me out as a terror suspect.

Bearded Darkie + Books On Bombs = Jumpsuit and Bumrape

Good question BQ.
The answer is that there would need to be an international agreement which ensures that there is no advantage in transferring money to the Cayman Islands because by such an agreement all countries would have to claim the same amount of tax.

Effectively creating unemployment in other countries. Thanks.