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 AvatarChris_sh 21st Dec - 11:33pm
    @David-1 Really, why do you think it is untrue?
  • User Avatarstuart moran 21st Dec - 11:30pm
    Sesenco Because the are up against the Tories as their main opposition and, for all the faults of the Coalition and the complete contempt shown...
  • User AvatarJulian Tisi 21st Dec - 10:43pm
    Good article - and yes this is the perfect opportunity to take the Tories to task at the lowest risk of looking "soft" on immigration.
  • User AvatarSesenco 21st Dec - 10:22pm
    Malc, it is a little bit more complicated, is it not? If John Leech is going to lose because the payroll part of the Parliamentary...
  • User AvatarDavid-1 21st Dec - 10:18pm
    "will you explain that this approach means that we won’t be able to infiltrate terrorist organsations and that puts an added risk on them and...
  • User AvatarDavid-1 21st Dec - 10:14pm
    "If Mr Clegg resigns tomorrow morning, we will be faced with a leadership election dragging out through January and February, eating up valuable campaigning time."...