Google Avoids £450 Million UK Tax

[The Running Man]

Given how appalling our tax and spend regime is, I find it very hard for criticising people or companies for avoiding tax.

When we have a fair and efficient taxation and spending setup, then choosing not to would be much easier to criticise.

really, so you think its fine for the rich to 'opt out' of contributing to our countries wealth?

you may not agree with the distribution of the revenues raised but how could you take that stance knowing that those paying the extra to make up the amounts NOT being paid by the rich are those who will contribute a higher % of their disposable income?

i think its awful and tbh those avoiding tax should be booted out of the country, as they are NOT contributors to our nation.

Forget immigrants for a second, why not kick out all those who claim ancestry but wont back it up with their cash.?

its not FAIR that those with money can buy their way out of taxation. period.

 

[Yamahahahahaha]

really, so you think its fine for the rich to 'opt out' of contributing to our countries wealth?

He didn't say that at all. He was pointing out that every successive government has it's own pet projects which burn tens, if not hundreds, of billions of pounds for no gain.

 

[Dolph]

really, so you think its fine for the rich to 'opt out' of contributing to our countries wealth?

Taxation doesn't contribute to a country's wealth, it contributes to economic wastage. Taxation spending does not create economic wealth apart from in very specific circumstances that do not apply to the vast majority of government spending within the UK.

you may not agree with the distribution of the revenues raised but how could you take that stance knowing that those paying the extra to make up the amounts NOT being paid by the rich are those who will contribute a higher % of their disposable income?

If you want to contribute to the country's wealth, you should be supporting a low taxation, high rights, high responsibility regime, rather than what we have in the UK with a high(ish) taxation, high rights, low responsibility regime.

i think its awful and tbh those avoiding tax should be booted out of the country, as they are NOT contributors to our nation.

On the contrary, successful business contribute far more to the wealth of our country through being successful than they do for taxation, unless you really think that the government can spend money better than the market can.

Forget immigrants for a second, why not kick out all those who claim ancestry but wont back it up with their cash.?

its not FAIR that those with money can buy their way out of taxation. period.

It's also not fair that taxation does not fall equally on all in percentage terms, but instead punishes the successful or the responsible. It is also not fair that the system rewards the feckless and the lazy while punishing those who take responsibility for themselves, and that we are forced to pay excessive amounts for substandard services with no option to opt out.

Address all those issues, and I'll fully agree with closing every tax loophole that exists.

 

[JAzz]

i think its awful and tbh those avoiding tax should be booted out of the country, as they are NOT contributors to our nation.

What about the people their employ and all the tax they pay? If those people were out of work there is a decent chance they might be on benefits and if they did find other work especially in this harsh environment it could mean other people would lose their jobs. What about all the businesses google deals with? Google helps them make extra money which in turn means they can keep more people employed, then you factor in the extra tax those companies pay due to extra revenue/profits.

Your plan doesn't seem very well thought out.

 

[The Mad Rapper]

What?

I'm an individual.

What's your point?

Having just had a 3 day suspension for calling someone who deserved it a retard, I'll hold my fire in respect of you.

Money's no more important to a business than it is to me. Should everyone stop paying tax if they could find enough loopholes in the law?

I pay 40% tax, if I could reduce that amount then I would without hesitation.

It'd be funny if you're one of the people that hates anyone on benefit.

Having just returned from South Africa, I think we should adopt their system. They have no benefit - if you can't work you starve. Completely brilliant - would solve a lot of problems here with the bone idle etc.

 

[semi-pro waster]

Having just returned from South Africa, I think we should adopt their system. They have no benefit - if you can't work you starve. Completely brilliant - would solve a lot of problems here with the bone idle etc.

Does that apply without exception i.e. no benefits for the disabled or elderly? I remain to be convinced that South Africa is a county we should aim to emulate with the problems endemic there.

As for the original story it's no great surprise that Google does this, the majority of large companies or even just wealthy individuals will use measures to limit their tax liability which is perfectly legal.

 

[The Running Man]

Taxation doesn't contribute to a country's wealth, it contributes to economic wastage. Taxation spending does not create economic wealth apart from in very specific circumstances that do not apply to the vast majority of government spending within the UK.

If you want to contribute to the country's wealth, you should be supporting a low taxation, high rights, high responsibility regime, rather than what we have in the UK with a high(ish) taxation, high rights, low responsibility regime.

On the contrary, successful business contribute far more to the wealth of our country through being successful than they do for taxation, unless you really think that the government can spend money better than the market can.

It's also not fair that taxation does not fall equally on all in percentage terms, but instead punishes the successful or the responsible. It is also not fair that the system rewards the feckless and the lazy while punishing those who take responsibility for themselves, and that we are forced to pay excessive amounts for substandard services with no option to opt out.

Address all those issues, and I'll fully agree with closing every tax loophole that exists.

if you know economics, you know the multiplier effect...and that government spending through taxation is one of the biggest economic stimulants that a country can harness.

you'll have to explain the net benefit of googles sucess to me to the UK, sure it employs people - but probably not that many, and the head honchos will also be avoiding tax left right and centre too.

it is your OPINION that flat rate tax is fairer...what is genuinely unfair is the lowest paid part of the community shouldering the highest taxation burden.

you cant justify rich people avoiding tax and forcing the poor to therefore pay more simply because you dont agree with how it is spent. thats why we have an election. can i simply opt out of adhering a law because the labour party introduced it and i didnt vote for labour?

no that would be nonsensical.

the issue i have is that even if tax was 'fairer' to all, the rich would still abuse the loopholes, because they can - and that is ultimately what rich people do.

next you'll be telling me that asking the better off portions of the nation to contribute a higher pound note value of tax would be immoral and counter productive too, and that rich people should actually pay a lower percentage?

 

[The Mad Rapper]

Does that apply without exception i.e. no benefits for the disabled or elderly?

No it doesn't. The elderly should receive the best that we can provide. The disabled as well, provided that they are disabled of course. There are a lot of actors out there who should be bloody well working, instead of leeching off me.

The Government have a lot to answer for as well. The way they sqander the cash they have should see them lined up against a wall and shot.

 

[Vonhelmet]

Big deal.

I'm a tax advisor and this stuff is absolutely standard. Redirect profits to jurisdictions with low corporation tax rates and keep your transfer pricing documentation in order.

EDIT: Which is pretty much what Burned_Alive said above.

 

[LordSplodge]

Having just returned from South Africa, I think we should adopt their system. They have no benefit - if you can't work you starve. Completely brilliant - would solve a lot of problems here with the bone idle etc.

I'd rather see some of my taxes wasted on scroungers to see the rest go on those who need it in times of crisis.

Seeing people starve or beg to survive is as far removed from completley brilliant as possible. I take it you would be happy for your family to strave should hard times come upon them?

Even 40% Tax Payers can fall on hard times with little warning.

EDIT: As for the OP it's no surprise all big companies do all they can to avoid paying tax. Welcome to last century...

 

[semi-pro waster]

No it doesn't. The elderly should receive the best that we can provide. The disabled as well, provided that they are disabled of course. There are a lot of actors out there who should be bloody well working, instead of leeching off me.

The Government have a lot to answer for as well. The way they sqander the cash they have should see them lined up against a wall and shot.

We're getting a bit off topic but from a quick search it appears that South Africa do have their problems with the benefits system also and while it is not the most authoratitive of sources it looks as if their system isn't so far removed from ours Expat Forums. I don't know much about it obviously but maybe you just saw the good parts of it?

 

[mattheman]

Having just had a 3 day suspension for calling someone who deserved it a retard, I'll hold my fire in respect of you.



I pay 40% tax, if I could reduce that amount then I would without hesitation.



Having just returned from South Africa, I think we should adopt their system. They have no benefit - if you can't work you starve. Completely brilliant - would solve a lot of problems here with the bone idle etc.

thats why that country isnt safe.

 

[kwerk]

Can't blame them. They are running a business after all, not a charity.

 

[khimbar]

Well done the Google accountants then. They should get a bonus.

 

[Le_Petit_Lapin]

Fair play, look at the numbers, if they were hit with a $450 million tax bill it would be unfeasible to operate here. I'd rather have them bringing jobs here than not tbh.

 

[cheets64]

Yay, just what we need, people who say this is a good idea clearly wants society to fail.

 

[Sin_Chase]

They operate inside of the law and maximise profits.

What's the problem?

It's not like Google paying that tax to the UK is in anyway going to help you prop up your life. Worry about yourself and keeping yourself alive instead of worrying that somehow corporation tax is going to benefit you.

 

[Dan87]

I think it's brilliant that they avoided playing tax, fair play to them

+10 respect points for google

 

[jamief]

Yay, just what we need, people who say this is a good idea clearly wants society to fail.

Or maybe they realise that Google are operating as all companies do when seeking to maximise profit?

If the law is broken, the Government can take steps to "fix" it. If they don't, they are to blame.

 

[PlumpMonkey]

Although this is personal income tax, rather than the corporation tax that the original article talks about, the BBC had an interesting article the other day about just how much tax "rich" people do pay as a percentage of the overall revenue generated from income tax.

http://news.bbc.co.uk/1/hi/magazine/8417205.stm

The top 10% of earners pay 55% of the income tax revenue. And the top 1% pay nearly 25% of total income tax revenue.

An interesting read, as it means most of your average joe public, and indeed a large percentage of those earning higher than average amounts are subsidised by the rich already...