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



Recent Comments

  • User AvatarAdam Robertson 25th Oct - 2:21am
    I think having Alex Salmond back in the House of Commons, will invigorate politics in both north of the border and south of the border....
  • User AvatarMatthew Huntbach 25th Oct - 1:26am
    Eddie Sammon I just want to make a quick point that if you try to set up a business in some sectors then it really...
  • User AvatarJohnTilley 25th Oct - 1:24am
    I would urge LDV readers to check out a range of reports of the results of this deal. The piece above is, to say the...
  • User AvatarMatthew Huntbach 25th Oct - 1:16am
    Glenn According to the election material the Tuition fee pledge was fully costed. It is not up to students or Joe Public to give politicians...
  • User AvatarStevan Rose 25th Oct - 1:05am
    Tony, I am sure you work hard and your intentions are genuine. But I dispute your right to do that work and therefore any right...
  • User AvatarRoland 25th Oct - 12:53am
    Geoff - I suspect given both the benchmark - emission levels in 1990 - on which the 40% reduction is based and the timescales -...