Tag Archives: corporatoin tax

Opinion: Get real about corporate tax

Companies currently pay corporation tax in the country where they are incorporated. A campaign is under way, in the Guardian, and the Commons Public Accounts Committee, that companies should instead pay tax where they make their sales. The proposal has populist appeal, but is impracticable.

Many companies, including UK companies, make export sales without costly incorporation in each sales country. If a US coal producer sells 1m tonnes of coal to UK powerplants for £100m, and makes £5m profit, it submits accounts in the US for tax authority scrutiny, and pays US tax on the £5m. Should this profit be …

Posted in Op-eds | Also tagged , , , and | 29 Comments
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  • User AvatarRichard Dean 28th Nov - 6:46am
    @Amalric I don't think your calculations are correct. If there were 3.2 million fewer people, there would also be 3.2 million fewer customers with money...
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  • User AvatarAmalric 28th Nov - 3:09am
    @ Richard Dean Thank you for pointing out my error - 260,000 is for 12 months not 6 (I seem to be making quite a...
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