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 AvatarEddie Sammon 3rd Sep - 1:01am
    This has the potential to get nasty and I don't like what I'm seeing. The UK and the EU need to be careful not to...
  • User AvatarJoe Bourke 3rd Sep - 12:31am
    John Dunn, Ukraine has a great deal to lose as a consequence of deteriorating relations with Russia and has sought to maintain its export trade...
  • User AvatarEddie Sammon 3rd Sep - 12:04am
    Liberals should continue arguing unfashionable causes, whilst not necessarily putting them in the manifesto. When it comes to Sterlingisation and the EU: I think Scotland...
  • User AvatarFrankBooth 2nd Sep - 11:55pm
    Tim13 - you suggested it was the cue for rump UK and Scotland to join the Euro. You'd have to deal with the implacably opposed...
  • User AvatarT-J 2nd Sep - 11:41pm
    OK, it's all very well and good to guarantee more powers, but I just don't have enough confidence in most of the people issuing that...
  • User AvatarDavid G 2nd Sep - 11:37pm
    +1 to what Martin said. The argument that current EU law or opinion doesn't allow something is pretty pathetic - the law will just have...