Tax avoiding companies ?
#61
Who's to say a tax-paying chain such as Nero or Costa would not take their place? You think these same employees would be out of a job if they didn't work for Starbucks? The only people truly benefitting from the arrangement are lawyers and accountants.
#62
Let's bring it to a more personal level. Let's say for example you and neighbour work at the same firm and receive the same pay, your neighbour structures his tax affairs by avoidance to lower his liability, you on the other hand just pay what you are told (but have the same opportunity to do the same as your neighbour )and end up with less.
Do you wish your neighbour well or complain?
Do you wish your neighbour well or complain?
Last edited by ReallyReallyGoodMeat; 13 November 2012 at 09:29 PM.
#63
Well if you are equating one action which is illegal and one that is legal, then I can't explain to you the difference. The tax avoidance is insignificant compared to the amount the government waste, surely that is important more so. Just because these publicised companies pay little corporation tax, you realise they generate hundreds of millions in tax of vat and employers NI, aswell giving employment to thousands of people.
Employers NI wont be vast amounts and every company has to pay these regardless, dont know the rates but if a company emoloys a lot of lower paid workers then they may not even need to pay it.
Businesses that pay full tax in the UK still provide employment, if they didnt someone else would, they only employ people as their isnt a machine to do the job, it isnt some benevolent gesture, usually companies spend as much effort as they can dumbing down terms and conditions in their favour, especially with unskilled labour. With the lower paid workers the state subsidises their income with various benefits so we get pay tax to goverment and they dole it out to people so they can have a cheap workforce, so we get to pay in whilst they make their profits dissapear with smoke and mirrors.
Basically my thinking is that if you do business here and make a profit then you pay a few quid back into the system and the system really needs to sort things out so nobody can void/evade paying any tax.
If everyone paid some when they are earning then perhaps it might not be as high.
Sorting out this country and its finanes will be a load of incremental changes, this is but one.
#64
In the case of Starbucks, it's been reported that they would offer a much higher rental to stop the smaller chains and independents getting in to those premises. If Starbucks weren't
in them, the others could be.
I'm not sure if a bunch of MPs are the right people to decide what is illegal or immoral, considering how many of them fiddled their expenses.
in them, the others could be.
I'm not sure if a bunch of MPs are the right people to decide what is illegal or immoral, considering how many of them fiddled their expenses.
#65
Greece thought in a similar way to you andy, that hasn't turned out too great.
If we don't stamp down on it soon, there'll be no UK companies left due to the uneven playing field, then where will we be? The great void will have to be filled by everyone else, what a great system, and completely legal, I don't know why we are complaining really!
If we don't stamp down on it soon, there'll be no UK companies left due to the uneven playing field, then where will we be? The great void will have to be filled by everyone else, what a great system, and completely legal, I don't know why we are complaining really!
#66
I agree that this should not go on and the loop holes should be closed, however, neither should the government impose a punitive taxation policy that would discourage foreign investment. I don't profess to have an answer on how to tackle this, I'm not an accountant but what I would say is that there is a fine balance between taxation and investment in businesses both home grown and foreign. As such any new policies should also ensure the UK remain as an attractive and competitive proposition.
#67
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#68
Sure, and I salute those that are brave enough to do so instead of claiming off the state. But my point was that there will still be plenty of UK businesses starting up despite the current tax policy. And to add that it's stupid to compare our situation with that of Greece.
#69
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Depends. If my neighbour was an American and squirrelled his money in foreign schemes I had no access to, yet had access to all the exact same amenities I had access to, then yes I'd be p!ssed. Especially if all the public services around me were turning to crap due to lack of funding.
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