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 AvatarSimon McGrath 2nd Mar - 8:16pm
    if we had devolved oil and gas taxation how would the SNP be reacting to the drop in revenue due to the fall in oil...
  • User AvatarStephen Hesketh 2nd Mar - 8:13pm
    Philip Thomas 2nd Mar '15 - 7:50pm "aren’t [we] all liberals democrats now?" I would say the majority of British people are small 'l and...
  • User AvatarPhilip Thomas 2nd Mar - 8:08pm
    I support ditching the Barnet formula. As Matthew is hinting though, I don't think that works out as well for Scotland as you seem to...
  • User AvatarMatthew Huntbach 2nd Mar - 8:07pm
    Since then the Tories have ditched any attempt to live up to the tag lines of the Big Society, ‘Vote Blue, Go Green’ and Compassionate...
  • User AvatarBolano 2nd Mar - 8:01pm
    And let us not forget - with regard to the Green agenda - Baroness Kramer's invaluable work in encouraging fracking. Very popular among many Somerset...
  • User AvatarMatthew Huntbach 2nd Mar - 7:59pm
    So, would you say that on the same grounds the wealth that is in London and the south-east should stay in London and the south-east...