{"id":19401,"date":"2013-03-04T15:23:07","date_gmt":"2013-03-04T15:23:07","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=19401"},"modified":"2013-03-05T09:19:03","modified_gmt":"2013-03-05T09:19:03","slug":"hsbcs-uk-tax-bill-looks-to-be-500-million-less-than-id-exepct","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/03\/04\/hsbcs-uk-tax-bill-looks-to-be-500-million-less-than-id-exepct\/","title":{"rendered":"HSBC’s UK tax bill looks to be \u00c2\u00a3500 million less than I’d exepct"},"content":{"rendered":"

I've\u00a0been\u00a0looking at HSBC's accounts<\/a>, out today.<\/p>\n

The company made pre tax profit of $20,649 million and had a tax charge of $5,315 million.\u00a0That tax charge splits down like this:<\/p>\n

\"Screen<\/a><\/p>\n

 <\/p>\n

That I can find HSBC does not say anywhere how much profit it makes in the UK. But since the UK tax charge for the year was $60m at a rate of 24.5% on average the taxable profit looks to have been $245 million.<\/p>\n

Now, let's look at that a different way. Let's apply the unitary apportionment formula<\/a> to group profits. From page 335 I know the\u00a0company\u00a0had 48,000 employees in the UK\u00a0out of 270,000 in all.<\/p>\n

And from page 40 of the media release<\/a>\u00a0I can get that $9,149 of income out of $68,330 was in the UK, whilst $18,391m of assets out of $79,935 were in the UK.<\/p>\n

The classic unitary apportionment formula says that profit\u00a0should\u00a0be weighted to a\u00a0country\u00a0in\u00a0proportion\u00a0with one third of the weighting applying to income, assets and staff.\u00a0So the maths is:<\/p>\n

UK profit = $20,649\/3 \u00a0x ($9,149\/$68,330) + $20,649\/3 x ($18,391 \/ $79,935) + $20,649 \/ 3 x (48,000 \/ 270,000)<\/p>\n

Now I make that $3,728 million of profit attributable to the UK on this basis.\u00a0Tax on that would be $913 million. But $60 million was paid.<\/p>\n

So for hosting HSBC and taking its risk the UK lost out on tax of $853 million, which is a little over \u00a3500 million - enough to pay outright for a couple of\u00a0hospitals.<\/p>\n

So, HSBC, tell us why that happened, will you? And how? And why you paid it somewhere else instead?<\/p>\n

The case for\u00a0country-by-country reporting for banks<\/a> is compelling.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

I’ve\u00a0been\u00a0looking at HSBC’s accounts, out today. The company made pre tax profit of $20,649 million and had a tax charge of $5,315 million.\u00a0That tax charge
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70],"tags":[],"class_list":["post-19401","post","type-post","status-publish","format-standard","hentry","category-banking"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=19401"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/19401\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=19401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=19401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=19401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}