Google's tax bill

[jtrade]

£50 million this year according to the BBC. But corporation tax is really not where it's at for this outfit.

Corporation tax should be where it’s at for the global tech - and other - giants, but as we know they have the means to legitimately avoid or greatly reduce their tax liabilities. Like it or not, this is understandable. What I simply cannot understand is why ALL western governments are being so slow in changing legislation to stop this avoidance, rather than trying to fine them for evasion, which - given the high level advice these companies have been provided - is not easy to prove (& will be in the courts for years).

 

[Bananahead]

Is that to enlighten me? ..

No.

But maybe this will help. http://www.nortonaccountancy.co.uk/google-adwords-vat-vat-on-google-adwords/

 

[richardg]

No.

But maybe this will help. http://www.nortonaccountancy.co.uk/google-adwords-vat-vat-on-google-adwords/

I had already read that.

 

[richardg]

Corporation tax should be where it’s at for the global tech - and other - giants, but as we know they have the means to legitimately avoid or greatly reduce their tax liabilities. Like it or not, this is understandable. What I simply cannot understand is why ALL western governments are being so slow in changing legislation to stop this avoidance, rather than trying to fine them for evasion, which - given the high level advice these companies have been provided - is not easy to prove (& will be in the courts for years).

corporation tax on profits is so easy to avoid though. Even for us, we can write off, write down stock to reduce the bill, depreciate stuff,buy stuff to increase expenses.

 

[Bananahead]

I had already read that.

But didn't understand it? If VAT registered businesses are self-administering then why would Google report that?

Do you declare VAT collected and passed on in your year end accounts? I don't remember ever doing so.

 

[wacko]

corporation tax on profits is so easy to avoid though. Even for us, we can write off, write down stock to reduce the bill, depreciate stuff,buy stuff to increase expenses.

Doesn't that mostly defer tax rather than avoid it ?

 

[richardg]

Doesn't that mostly defer tax rather than avoid it ?

Sort of. I'm only 3 years in to submitting ltd company accounts but there always seems to be some legal mechanism available. Maybe one year coming soon, there will be none left.

 

[richardg]

But didn't understand it? If VAT registered businesses are self-administering then why would Google report that?

Do you declare VAT collected and passed on in your year end accounts? I don't remember ever doing so.

I'd like to know how much VAT they paid.

 

[jtrade]

corporation tax on profits is so easy to avoid though. Even for us, we can write off, write down stock to reduce the bill, depreciate stuff,buy stuff to increase expenses.

But that's my point - for the global tech giants the "soft shoe tax shuffle" loopholes - which are fairly transparent, should be rapidly shut down as they become exposed. "Rapidly" should be within 12 months or so AND there should be a clear statement that henceforth any new avoidance strategies not in the spirit of current legislation can be back-taxed.

As much as I admire certain (product) aspects of Apple Inc., I thought it was a total outrage that Tim Cook, when sitting in front of a Congressional committee, while proudly stating that Apple pays more tax than anyone else, boldly added that their tax affairs were also entirely within the spirit of all tax legislation. A blatant lie.

 

[richardg]

But that's my point - for the global tech giants the "soft shoe tax shuffle" loopholes - which are fairly transparent, should be rapidly shut down as they become exposed. "Rapidly" should be within 12 months or so AND there should be a clear statement that henceforth any new avoidance strategies not in the spirit of current legislation can be back-taxed.

As much as I admire certain (product) aspects of Apple Inc., I thought it was a total outrage that Tim Cook, when sitting in front of a Congressional committee, while proudly stating that Apple pays more tax than anyone else, boldly added that their tax affairs were also entirely within the spirit of all tax legislation. A blatant lie.

Within the spirit of all tax legislation...ROFL...what spirit?

I do think the corporation tax need sorting but it is much more complicated than VAT. And we don't even know what the net contibution is.

 

[gintonic]

I for one don't care so long as what they do is legal. Amazon is the online department store that provides me with the goods I want, at prices I am happy with and when I want them.

 

[richardg]

I for one don't care so long as what they do is legal. Amazon is the online department store that provides me with the goods I want, at prices I am happy with and when I want them.

Lol, sleepwalking into there being no competition, no jobs and finally no amazon unless they become the world government. I can imagine Jeff Bezos ending up looking like the floating fat man in Dune under the stress of it all.

It's not funny actually. The big companies are going to fvck us up in a way the Brexit mess cannot get close to.

 

[merlin]

I for one don't care so long as what they do is legal. Amazon is the online department store that provides me with the goods I want, at prices I am happy with and when I want them.

What happens if you get liver cancer and it's not diagnosed until it is too late because of waiting times to see a consultant?

 

[gintonic]

What happens if you get liver cancer and it's not diagnosed until it is too late because of waiting times to see a consultant?

what?

 

[merlin]

You say you don't care.

If you don't care about tax evasion then you don't care about NHS funding and your health care.

 

[Patrick Dixon]

It's not funny actually. The big companies are going to fvck us up in a way the Brexit mess cannot get close to.

Yeah well, Brexit is their free pass to do so.

 

[gintonic]

You say you don't care.

If you don't care about tax evasion then you don't care about NHS funding and your health care.

if you think the NHS would get anywhere near what it needs from collecting legally avoided tax then you are mistaken. Yes it might get some, but it wont solve the problems. In fact if the companies concerned then decide to trade in other ways - the tax take from now might decrease if we chase that golden pot.

Did you write the headlines for the leave campaign? Your connections are in the same league as Boris and his £350m for the NHS etc.............

So yes I genuinely do not care what Amazon does. I do not buy your connections - and even if I did, I would rather the government of the day spent the money on infrastructure rather than the NHS. The NHS needs reviving but not by throwing money at it.

 

[richardg]

Yeah well, Brexit is their free pass to do so.

Lol, like they haven't already been talking the piss since whenever.

 

[richardg]

if you think the NHS would get anywhere near what it needs from collecting legally avoided tax then you are mistaken. Yes it might get some, but it wont solve the problems. In fact if the companies concerned then decide to trade in other ways - the tax take from now might decrease if we chase that golden pot.

Did you write the headlines for the leave campaign? Your connections are in the same league as Boris and his £350m for the NHS etc.............

So yes I genuinely do not care what Amazon does. I do not buy your connections - and even if I did, I would rather the government of the day spent the money on infrastructure rather than the NHS. The NHS needs reviving but not by throwing money at it.

NHS insider here. Or at least the missus is, on ICU. It defo needs money throwing at it along with whatever else to make it perform better.

I'd be keen to see w hat HMRC thinks it is losing from avoidance / evasion at corporate level before being so sure. My guess is as good as yours,maybe better. And my guess is it would be a big help.

 

[gintonic]

NHS insider here. Or at least the missus is, on ICU

Actually I know loads of NHS insiders, colleagues, practitioners and my retired Dad - and the view from here is mixed.