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FAB - your chance to tax the big companies
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By (user no longer on site) OP
over a year ago
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Much is said about big companies not paying their fair share of tax so here is your chance to tell everyone how you think a company should be taxed.
Let's set the scene....
A company is created by a visionary. His/her ideal is to be successful, create a good business and make a profit. Along the way, he/she employs people and whilst building the Company takes on investors as shareholders. The Company is successful and earns a profit. You run the tax policy for the government - how are you going to deal with this company? Do you want them to adhere to current ax laws or do you think they should pay more/ less and how? |
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By (user no longer on site) OP
over a year ago
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"If you have rules for tax then everybody must stick to the rules .
You wouldn't have a football match with different rules for each team would you?"
OK - so by your rules the general moaning that Companis are not paying their fair share holds no water? |
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By (user no longer on site) OP
over a year ago
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"Why should they pay more/less than current tax laws?"
Only that there is much complaining that tax is being unfairly and immorally not being paid by some big co's. |
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"Why should they pay more/less than current tax laws?
Do they?.....I think they just have clever accountancy lawyers"
If they are playing by the rules irrespective of creative accountancy and loopholes then I see no problem. It is the role of the Government to set the tax laws and plug any perceived loopholes. |
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By (user no longer on site) OP
over a year ago
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"Why should they pay more/less than current tax laws?
Do they?.....I think they just have clever accountancy lawyers"
Not necessarily "clever."
Lets be real here. If you are a multi billion pound / dollar company with activities and transactions in hundreds of jurisdictions it would be easier to momentously cock up than act judiciously. If the tax authorities of all the G8 countries and more are remiss at re-aligning their tax treaties to deal with multi nationals then that is hardly the fault of the Company.
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By (user no longer on site)
over a year ago
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"Much is said about big companies not paying their fair share of tax so here is your chance to tell everyone how you think a company should be taxed.
Let's set the scene....
A company is created by a visionary. His/her ideal is to be successful, create a good business and make a profit. Along the way, he/she employs people and whilst building the Company takes on investors as shareholders. The Company is successful and earns a profit. You run the tax policy for the government - how are you going to deal with this company? Do you want them to adhere to current ax laws or do you think they should pay more/ less and how?"
the scene is over simplified, the problem is companies who are able to base their profit centre in a foreign low tax nation but then transfer those monies back to the original country as a loan so as to pay dividends while claiming no profit has been made (or one of the other wheezes employed)
In your scenario the UK based organisation would be at a competitive disadvantage to the multinationals.
However the main shareholder should be expected to pay the normal rate of tax on their income and not be able to substitute income from paye for income via dividends (which is subject to a lower tax rate.....) |
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"Why should they pay more/less than current tax laws?
Only that there is much complaining that tax is being unfairly and immorally not being paid by some big co's. "
Who by? Readers of the Daily Mail and the Sun? Morals are different to laws.  |
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By (user no longer on site) OP
over a year ago
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"Much is said about big companies not paying their fair share of tax so here is your chance to tell everyone how you think a company should be taxed.
Let's set the scene....
A company is created by a visionary. His/her ideal is to be successful, create a good business and make a profit. Along the way, he/she employs people and whilst building the Company takes on investors as shareholders. The Company is successful and earns a profit. You run the tax policy for the government - how are you going to deal with this company? Do you want them to adhere to current ax laws or do you think they should pay more/ less and how? the scene is over simplified, the problem is companies who are able to base their profit centre in a foreign low tax nation but then transfer those monies back to the original country as a loan so as to pay dividends while claiming no profit has been made (or one of the other wheezes employed)
In your scenario the UK based organisation would be at a competitive disadvantage to the multinationals.
However the main shareholder should be expected to pay the normal rate of tax on their income and not be able to substitute income from paye for income via dividends (which is subject to a lower tax rate.....)"
But if the multi national were to be operating across say 13 borders within Europe and 12 of the 13 were seemingly losing CT revenue it would surely need combined action by all 12 to make something happen. If only 1 of the 12 was squealing like an injured piglet, that piglet is unlikely to garner the support of the other 11 who simply accept the free market and don't allow envy to become political. |
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By (user no longer on site) OP
over a year ago
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"Why should they pay more/less than current tax laws?
Only that there is much complaining that tax is being unfairly and immorally not being paid by some big co's. Who by? Readers of the Daily Mail and the Sun? Morals are different to laws. "
I agree with you |
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"Why should they pay more/less than current tax laws?
Only that there is much complaining that tax is being unfairly and immorally not being paid by some big co's. Who by? Readers of the Daily Mail and the Sun? Morals are different to laws.
I agree with you"
That's good then...I shall sleep earier tonight.  |
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An awful lot of people in this country are looking for someone to blame, it's only natural to look elsewhere to blame when in fact half of the population need to look in the mirror to see who to blame for their personal financial woes..... |
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By (user no longer on site) OP
over a year ago
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"Much is said about big companies not paying their fair share of tax so here is your chance to tell everyone how you think a company should be taxed.
Let's set the scene....
A company is created by a visionary. His/her ideal is to be successful, create a good business and make a profit. Along the way, he/she employs people and whilst building the Company takes on investors as shareholders. The Company is successful and earns a profit. You run the tax policy for the government - how are you going to deal with this company? Do you want them to adhere to current ax laws or do you think they should pay more/ less and how? the scene is over simplified, the problem is companies who are able to base their profit centre in a foreign low tax nation but then transfer those monies back to the original country as a loan so as to pay dividends while claiming no profit has been made (or one of the other wheezes employed)
In your scenario the UK based organisation would be at a competitive disadvantage to the multinationals.
However the main shareholder should be expected to pay the normal rate of tax on their income and not be able to substitute income from paye for income via dividends (which is subject to a lower tax rate.....)"
If you could not take dividends at a lower tax rate - where would the incentive come from to invest in the Co? With risk comes reward surely? Or is that risk should come with no reward at all? |
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By (user no longer on site) OP
over a year ago
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"An awful lot of people in this country are looking for someone to blame, it's only natural to look elsewhere to blame when in fact half of the population need to look in the mirror to see who to blame for their personal financial woes....."
Now is that not the truest thing to be said on here tonight.
When things are going wrong, look first in the mirror before looking elsewhere. |
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By (user no longer on site)
over a year ago
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If a company cannot remain in profit by adhering to the law and meet the full costs of being in business, which includes employment costs, tax costs, and overheads, then it doesn't deserve to be in business. |
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