So it seems that Google is in the firing line again this week although they are joined by the likes of Amazon and Facebook this time. Today Chancellor George Osborne spells out his concerns about the tech giant’s tax regimes or more to the point how they avoid paying very much UK tax at all, in an article published on the BBC news website.
The way in which technology companies such as Google, Amazon and Facebook, to name just a few, are liable for taxes in the UK is about as clear as mud for the majority of us, in fact these mega rich corporations have got tax evasion (or should I call it tax efficiently for fear of being sued) down to a fine art.
Here in the UK we love these technology companies and welcome them into our daily lives with outstretched arms, we use Googles search facilities and Facebook social pages with a passion generating billions of pounds a year in revenue for these corporations but they often pay very little tax here in the UK usually because these vast profits are notoriously hard to pinpoint where they are.
Google, Amazon and Facebook are not alone in this currently legal system or scam as some like to call it, other large corporations act in exactly the same way.
Speak to the corporations themselves and they are quick to point out that they create many jobs here and are obeying the tax system set out by the UK government’s tax laws but really, in my humble opinion, they are boxing clever and possibly manipulating the rules to serve their needs.
Shifting sales around the world to lower tax jurisdictions and setting up offshore holding companies is just two of the many guises that are used to avoid paying tax in the point of origin, ie the UK.
From one point of view I suppose you can’t blame these corporations for paying as little as possible, after all they are simply money making profit generating machines and have shareholders that they are obligated to serve, they have to make the company as tax efficient as possible but by moving sales off shore, paying huge amounts to apparent license holders that are off shore too all makes it a very murky mix indeed, and that’s what stirs up the paranoia, no one, not even the government actually knows what is truly going on.
Many people feel that this ‘murkiness’ needs to be cleared up so the profits that these companies make are accountable just like any other resident company in the UK, to avoid the huge profits being diverted around the world.
Which was something that George Osborne clearly agreed with when he stated: "If you abuse our tax system, you abuse the trust of the British people. My message to these companies is clear. We will put a stop to it. Low taxes..Yes, but low taxes that are paid."
To read the full story on this go to the BBC news website for full coverage.
By: Johnny G
Posted: December 3, 2014, 4:47 pm
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