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 …

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Recent Comments

  • User Avatarjedibeeftrix 30th Sep - 10:46pm
    on that subject: http://i.dailymail.co.uk/i/pix/2012/10/09/article-2215070-156C345A000005DC-652_634x228.jpg "This is sure to leave many middle-earners scratching their heads, wondering how on earth the hundreds of pounds taken from them...
  • User AvatarConor McGovern 30th Sep - 10:45pm
    Well done Julian. not that Theresa May will take any notice. She's in thrall to the same interests as the rest of the British political...
  • User AvatarEddie Sammon 30th Sep - 10:42pm
    George Potter, some people seem relaxed about eroding many pensioners incomes away with inflation. I used to be a retirement planner, so I know what...
  • User AvatarRebecca Hanson 30th Sep - 10:38pm
    @ David, If you thing I shouldn't be asking teachers, could you give me an assessment of the impact of current education reforms instead then...
  • User AvatarRebecca Hanson 30th Sep - 10:37pm
    @Roland. In 'The Educators' on Radio 4 Jo Boaler talked about the communication networks which exist between education research in the hands of academics of...
  • User AvatarGeorge Potter 30th Sep - 10:26pm
    @Eddie Sammon I really must applaud the kind of economic illiteracy that makes you think that arguing against targeting inflation in monetary policy is the...