Google Avoids £450 Million UK Tax
- Thread starter philip2009
- Start date
Caporegime
- Joined
- 18 Oct 2002
- Posts
- 33,188
When will this damn government learn. If they struck a deal with google to undercut the tax rate of Ireland, at say 24%, Google would save money, and we'd make £445.5million instead of losing out on £450million.
Labour, tax every company and rich person so highly they avoid paying tax here and save money, but still pay a lower rate of tax elsewhere. Jacking on tax on the rich, moves them away, not increases revenue. A tax on rich people makes poor people feel like Labour care about them and vote for them, while increases on taxes to the rich decreases the income generated by our country as its pushed so many companies and rich people elsewhere we've lost their entire income instead.
If we taxed in a fair way to other countries, we'd be making a heck of a lot more in tax, have a heck of a lot more industry generating money and paying tax and have a heck of a lot less jobs in the public sector as a consequence, so more tax, less outgoings, less debt, better all around.
Google have done nothing wrong, they can choose to base their companies where ever the heck they like. Other countries use their heads and strike deals with companies, tax breaks, to get them to base their business in their country and thereby secure jobs, tax income and good will. We do the opposite, truly superb work by Labour.
As plumpmonkey highlighted, the tax pay a massive portion of the taxes scare them all off and we'll be ridiculously short and completely unable to continue running any of our services. Google are just one in a long line of thousands of companies who've been scared off setting up shop here.
Labour, tax every company and rich person so highly they avoid paying tax here and save money, but still pay a lower rate of tax elsewhere. Jacking on tax on the rich, moves them away, not increases revenue. A tax on rich people makes poor people feel like Labour care about them and vote for them, while increases on taxes to the rich decreases the income generated by our country as its pushed so many companies and rich people elsewhere we've lost their entire income instead.
If we taxed in a fair way to other countries, we'd be making a heck of a lot more in tax, have a heck of a lot more industry generating money and paying tax and have a heck of a lot less jobs in the public sector as a consequence, so more tax, less outgoings, less debt, better all around.
Google have done nothing wrong, they can choose to base their companies where ever the heck they like. Other countries use their heads and strike deals with companies, tax breaks, to get them to base their business in their country and thereby secure jobs, tax income and good will. We do the opposite, truly superb work by Labour.
As plumpmonkey highlighted, the tax pay a massive portion of the taxes scare them all off and we'll be ridiculously short and completely unable to continue running any of our services. Google are just one in a long line of thousands of companies who've been scared off setting up shop here.
Firstly, legally, I'm sure Google has done nothing wrong- so retrospective punishmnet would be unfair.
However, in my opinion, Google should have to pay UK tax on all its UK earnings. That money used to go to UK advertising firms and now literally drains straight out of our economy- Google should be given an ultimatum that their paid search advertising will be banned in the UK if they dont pay tax on it.
However, in my opinion, Google should have to pay UK tax on all its UK earnings. That money used to go to UK advertising firms and now literally drains straight out of our economy- Google should be given an ultimatum that their paid search advertising will be banned in the UK if they dont pay tax on it.
Yes, why not? It would be perfectly legal.
So, your plan is to ban google from advertising in the UK (May i ask how, by the way? Stop us visiting domains in the US with google ads?) for doing something completely legal. Nice plan.
Last edited:
Well in Africa you don't stop driving for anything - including red stop lights. The cause is the very reason you've stated.
That is a very good point. I think this is part of a larger campaign by News Corp against Google.
Everyone in UK would avoid paying TAX if they could! Those that would choose to pay tax need they head examining!
Contributing to society and all that jazz does not wash with me! Society has done bugger all for me so dont be that argument that people/companies should contribute to society!
We all wake up to make money! Simple as that! Money is the currency of life! Thank god im not PAYE!
Contributing to society and all that jazz does not wash with me! Society has done bugger all for me so dont be that argument that people/companies should contribute to society!
We all wake up to make money! Simple as that! Money is the currency of life! Thank god im not PAYE!
Associate
- Joined
- 7 Jul 2009
- Posts
- 510
- Location
- Bristol, UK
That might well be the case, but the point is, if the top 1% of earners in this country got fed up with constantly being harassed for more and more and decide to leave the country (or work out how to pay tax elsewhere), then joe-public will have to stump up for the missing 25% of revenue income.
Also its a well known economic principle that increasing taxes wont necessarily generate more income. Its called the Laffer Curve
Its also like something I saw a while back about Valve doing the cheap weekends on Steam. By doing a 50% price decrease they increased sales by over 1000% thus increasing revenue.
There would probably be a revolution if that happened.
No, what I suggest is we make it illegal for them to tax dodge in the UK, and then ban them if they continue to refuse to pay. Quite a big if subtle difference.
Secondly, you could tell google that they aren't allowed to let adwords operate on google.co.uk- quite simple really. There would be no need for firewall-like restrictions. If they continued to, the government could bring a lawsuit against them (if the laws are changed).
I personally dont understand all the google-fanboyism. That money should rightly stay in the UK economy. I understand the economics arguments- we probably should just strike a deal and undercut Ireland- but not the "way to go google, great to see them using their initiative to dodge tax" ones.
Btw my job is google adwords paid search advertising.
Soldato
- Joined
- 24 Nov 2002
- Posts
- 16,376
- Location
- 38.744281°N 104.846806°W
I find any Brit that says good on Google, frankly, disturbing. Whilst they seem to be acting within the law, morally it is not exactly good for the UK. Shame on you all.
Soldato
- Joined
- 16 Jun 2009
- Posts
- 2,566
- Location
- Bucks
That is a very good point. I think this is part of a larger campaign by News Corp against Google.
Perhaps an examination of *their* corporate structure would help clarify matters. Maybe this is to divert attention away from ...something.
You have no idea how much business the UK would lose if we put a stop to this sort of thing across the board.
All multinational companies do this. All of them.
Lower corporation taxes to a more competitive level and then you'll get more revenue from those able to choose where to pay tax, and those who it is no longer cost effective to avoid taxes.
This is a well established idea within economics. Unfortunately, Labour have absolutely no idea of economics, hence why they always screw up the country and leave it in a mess any time they are in power for a reasonable period of time.
Soldato
- Joined
- 20 Jul 2004
- Posts
- 3,659
- Location
- Dublin, Ireland
The thing is though the Rate of Corporation Tax in Ireland is 12.5%, way below many other EU states, and this is a very common practice for British Companies. For example Shires moved it's HQ over to Dublin last year to avail of this tax rate. I seem to remember it was staffed by about 10 people at the time. The vast majority of shires operation remained in the UK, but it pays its tax in Ireland.
The Low Corporate Tax Rate has been, and will continue to be, a massive bone of contention with other EU states, as Ireland is effectively poaching massive Foreign investment and tax revenue from other EU states.
Ironically the biggest defenders of this situation is Britain, who continue to fight on Ireland's side against Tax harmonisation in the EU.
Nate
Edit:- Graph of EU tax rates
Last edited: