How would you feel about paying 15% more for your online goods?

Well it has been passed.

It’s a good thing imo, prices may go up a bit but it’s good that these ginormous companies might now have to pay a bit more. Morally it’s wrong what they have been doing, but unfortunately it’s perfectly legal. There’s far too much complexity within corporation tax!
 
d_brennen said:
Joe Blow agreeing to more taxes is like turkeys voting for Christmas.

How about the government ensure tax is collected correctly AND not squandered? Crazy idea, I know.
Click to expand...
d_brennen said:
Joe Blow agreeing to more taxes is like turkeys voting for Christmas.

How about the government ensure tax is collected correctly AND not squandered? Crazy idea, I know.
Click to expand...

Because the tax is collected correctly but with clever accounting these companies book all profits through tax havens and pay little in the countries they actually operate in.
 
weringo said:
Whilst changing the EU's tax rules requires a unanimous vote there are many other laws the EU can change with just a simple majority. As such if the rest of the EU want tax rules changed it would not be wise of Luxembourg to drag their heels since the EU could simply introduce legislation that harms Luxembourg (for example increasing funds regulation - a big industry for Luxembourg). This is why we've already seen significant tax reform in the EU in recent years (in particular see ATAD 1 & 2), which the likes of Luxembourg and Ireland voted for despite it harming their Internationally competitive tax systems.
Click to expand...


And Luxembourg could retaliate by just saying no to everyother vote going crippling the eu.


The unanimous system means everything has to be done in backroom in secret in advance.
 
Reuben klang said:
It is.

It is a level field. Even if you got Amazon (or others) to incorporate solely in the UK as an LTD they’d just offset all the profits in some form whether it’d be owing to another UK company that they rent the buildings or another that abroad. Every UK company can legally do the same.

There isn’t really an easy way at all to get business to pay tax, especially those who have the means to pay accounts and lawyers big bucks to find legal ways. That’s the only difference, they are just better at playing the game, the same game everyone is playing. To make money.
Click to expand...
Tax revenue not profit?
.suddenly all the tax avoidance schemes then having you paying tax over and over in each company :D
 
Tefal said:
Tax revenue not profit?
.suddenly all the tax avoidance schemes then having you paying tax over and over in each company :D
Click to expand...

Doesn’t work at all due to a number of factors like companies losing money at the start, having vast expenses etc etc the more I think about it the more I think there is no easy way around it at all.
 
Reuben klang said:
It is.

It is a level field. Even if you got Amazon (or others) to incorporate solely in the UK as an LTD they’d just offset all the profits in some form whether it’d be owing to another UK company that they rent the buildings or another that abroad. Every UK company can legally do the same.

There isn’t really an easy way at all to get business to pay tax, especially those who have the means to pay accounts and lawyers big bucks to find legal ways. That’s the only difference, they are just better at playing the game, the same game everyone is playing. To make money.
Click to expand...

No, every UK company cannot do the same. In order to engage in the kind of tax avoidance that Amazon, Microsoft etc do, you have to incorporate in multiple jurisdictions and funnel the money into a non-UK company.

There is a critical mass of revenue required to make all this worthwhile, which gives large multinationals a huge competitive advantage over smaller businesses.

No-one is saying what they are doing is illegal. They are playing by the rules, and the rules need changing so that domestic businesses can compete on a level playing field.
 
One of the first things Joe Biden did today was to agree an £800+ million tariff on the UK for its 2% tax on revenue for the tech firms. Then he postphoned it for 180 days so that this corporation tax system can be set up.
If it stays as the status quo, America will be clawing back revenue taxes from us, France and a few others in punitive tariffs. No choice really, all the countries need to play ball on this otherwise we are all ******.
 
What get's me about tax is that I need a new roof for the house, I have to pay VAT@20% on the cost of that on wages that I've already paid tax on ffs. Why the **** is there tax on essential repairs to homes?! I could claim it back if it wasn't MY home but a BTL that I owned. Baffles me.

Then corpos just shift their profits all over the place, probably don't pay VAT on any of their warehouse improvements etc...
 
How does the g7 agreeing to this change anything? None of the g7 countries have corporation tax below 15%, we are the closest at 19% while some of the others are around the 30% mark.

So how do the g7 now make this global?
 
I'd rather live in a higher taxed country like the UK than a lower taxed area like Bangladesh. People who think that higher taxes for these tech companies are a bad thing really need to think about why tax exists in the first place.

Then again, over the past few decades we've evolved into a global community of short sighted selfish idiots, so I won't be holding my breath.
 
arknor said:
werent they already taxed at like 18 or 20 odd percent though...

it's just they avoid paying it, this is to try and set loads of countries to the same tax rate.

ireland are at 12.5% and get all the UK amazon tax
Click to expand...

https://tech.newstatesman.com/business/amazon-pass-on-digital-services-tax

Amazon has announced that it will pass on the cost of the UK’s new digital service tax to sellers, in a move that risks the ire of the British government.
Click to expand...

from last year a digital service tax...

I'm not entirely sure what taxes they have been paying and what ones they have been avoiding so i'm guessing the G7 agreement was the last resort.
 
Some of the comments in this thread are mind blowing. Poor ocuk'rs are defending multi billion $ companies by saying they pay tax they are obliged to.......what planet do I live on.

How about no, if they can make 44 billion in profit......then can spare a few billion in tax and still make billions profit.

There is zero defense against that logic.

We make it world wide and we make people pay the same % of tax, end of. I don't think it's fair I pay more than they do, and I'd still say the same if I earned 4x more.

Grow up tbh is what I say to those who think the ultra rich should be more easily let off than the rest of us.
 
Combat squirrel said:
Some of the comments in this thread are mind blowing. Poor ocuk'rs are defending multi billion $ companies by saying they pay tax they are obliged to.......what planet do I live on.

How about no, if they can make 44 billion in profit......then can spare a few billion in tax and still make billions profit.

There is zero defense against that logic.

We make it world wide and we make people pay the same % of tax, end of. I don't think it's fair I pay more than they do, and I'd still say the same if I earned 4x more.

Grow up tbh is what I say to those who think the ultra rich should be more easily let off than the rest of us.
Click to expand...

The only one with sense fancy, a pint mate?

Like ones in here saying they'll pay an extra 15% no problem, while the NHS is on its knees, nurses crying looking for a pay raise, let's all clap for key workers, but here take a 1% pay rise if you're lucky but we will jack the price of everything by 15%

WTF lads?
 
Should just scrap the corporate tax rate for these behemoths and just stick them straight on social programs.

Google you are on roads and potholes this month, Amazon you're funding the care homes, Microsoft you're on bins and waste.
Sorry Apple you've drawn the NHS, lets hope for something better next month!
Go get em lads.
 
There is so much wrong in this thread it’s unreal and I don’t know where to start.

The key point of the agree agreement is not the tax rate, it’s that they will be taxed based on where the sale takes place and not where the company is incorporated (Ireland/Luxembourg).

The U.K. will winsome and lose some, e.g. a U.K. will now lose some tax to France, Germany etc. but it will gain some from them too. The biggest ‘losers’ are probably Ireland and Luxembourg. I doubt the USA will lose out on much, if anything because although the biggest tech companies are based there, it’s very rare for them to remit the money back to the states because it gets taxed again at their tax rate. If you look at the likes of Apple, they have tons of ‘cash’ but they hold it in their overseas subsidiaries so they don’t have to pay the USA tax on it either.

The UKs rate is already well above the minimum so it’s almost irrelevant and you’ll not be paying 15% extra for your stuff. The likes of Amazon still have to remain competitive and while they have good prices, most of their mainline products can be had cheaper a lot of the time.
 
You must log in or register to reply here.
Back
Top Bottom