After the verbal chicanery delivered by Osborne recently over the EU`s demand
for £1.7bn, it`s not surprising to see that being forced to scrap his tax
reducing enticement vehicle, the "patent box", is somehow "a great deal for
Britain". The "incentive"
was designed to encourage companies to Britain, as they would only have to pay a
maximum of 10% corporation tax, so avoiding higher tax elsewhere. As its gradual
removal has been brought about largely by Germany "arguing that it encouraged
artificial shifting of profit", could we ask the Germans to complain too, about
the behaviour of this country`s "Big Four" accountancy firms? Used by our
government on Treasury tax committees, they then find ways for companies and
individuals to avoid tax, with their payment being a percentage of the taxes
saved. Deloitte, one of the "Big Four", issued a pamphlet last year which stated
that for every £1m of income in the UK, £165,000 of cash tax can be saved! Yet,
the government continues to award these firms massively lucrative contracts, and
doesn`t even insist on the return of honours from CEOs of companies found to be
tax avoiding.
Our government is also responsible for not
only another avoidance scam, the relaxation of the so-called "controlled foreign
companies" laws, but also the cutting of thousands of jobs, including those of
tax inspectors, at HMRC, where "sweetheart deals", made with companies like
Vodaphone and Starbucks, have caused so much public disquiet in this country,
let alone in the corridors of power of Europe.They have done next to nothing
about tax havens where trillions are squirrelled away; the British Overseas
Territories, according to "War on Want", together "rank as the most significant
tax haven in the world, ahead of even Switzerland".
How can we criticise Jean-Claude Juncker
for the "tax avoidance schemes that were rife in Luxembourg during his
premiership", when we have a government doing similar here? Can we really expect there
to be an effective agreement on closing international loopholes and ending tax
avoidance, involving all the members of the G20 group, when the British
government`s hypocrisy is clear for all to see?
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