The Guardian published a story with this headline in the past hour or so:
I think that's the first time an interview I have done at the local recycling centre after clearing out the garage has got a headline.
As I can't add much to what is quoted by the Guardian I suggest you read it there.
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Socialism for the rich.
And Bertrand claims to hate it.
It’s the way he tells them.
What if this did not set a precedent?
What if this reflects the ethos and established practices of HMRC?
What if we only just found out?
Good questions
Have you seen how HMRC has handled GE Healthcare http://www.independent.co.uk/life-style/health-and-families/health-news/ge-healthcare-us-healthcare-giant-makes-fortune-from-nhs-but-pays-hardly-a-penny-in-tax-a6828446.html ?
Ripping off two large government institutions at once. Not bad….
I have seen
I have worked on this issue
There is a very confused thinking in the whole process by either or both of HMRC and Osborne. Release the details of this ‘fantastic’ deal which is good for the country. But then don’t tell the country on what it is based, how it is worked out and why it is such a fantastic deal.
HMRC must be frightened the Google settlement will set a precedent. And there is no other possible conclusion other than that it reflects HMRC new practices – otherwise why the press release and fanfare?
In fact it has completely backfired and served to emphasise to the everyday taxpayer the unfairness of the tax collection process. It is a complete cockup for HMRC and, as a bonus, they’ve short changed their own targets for tax collection at the same time.
A textbook lesson on how not to do it.
So according to David Gauke, Google were taxed according to the profits of their “economic activity” in the UK, not the profit on their sales in the UK.
What actually is economic activity and if they were taxed at 20% corporation tax (plus some fines and interest) is a circa £500 million profit on economic activity in the UK over 10 years a reasonable figure for the HMRC to have agreed on?
Compared to the estimated annual £4 billion UK turnover and £1 billion “real profit”, this still seems like a derisory 10 year figure to me!
How on earth are we (or HMRC) supposed to know if they don’t publish accounts that accurately reflect the facts? UK business should still be up in arms!
Agree
A blog may follow….
http://www.theregister.co.uk/2016/01/25/uk_google_tax_deal_we_told_you_so/