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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Recent Comments

  • User AvatarRoland 12th Feb - 10:20pm
    Junior doctors are highly intelligent people who have read the proposals for themselves & are not just listening to the BMA. If they think the...
  • User AvatarVictor Grayson 12th Feb - 9:34pm
    £22billion in foreign investment that is, sorry.
  • User AvatarVictor Grayson 12th Feb - 9:33pm
    @RC@petermartin2001-although figures are very difficult to dig out it would seem that the UK receives an average of £22 billion per month and invisible earnings...
  • User Avatarpetermartin2001 12th Feb - 9:19pm
    @ Victor Grayson, "what proportion of the monthly government borrowing requirement do you think is attributable to the balance of payments deficit ?" OK. Lets...
  • User AvatarCaron Lindsay 12th Feb - 9:02pm
    Ok, enough about housing now. We're supposed to be talking about conference.
  • User Avatarpetermartin2001 12th Feb - 8:58pm
    @RC @Victor Grayson. I'd say we are in some agreement on the difficulty in the attribution of causality. Nevertheless that's not to say there isn't...