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Because corporation tax is a tax on profit. Profit is roughly revenue - expenses. How do you ever reliably calculate Google's expenses for the UK? It's basicall
by benzoate 11y ago
Because corporation tax is a tax on profit. Profit is roughly revenue - expenses. How do you ever reliably calculate Google's expenses for the UK? It's basically always going to be a pseudo made up number between total world wide expenses and 0, and shockingly they declare the highest number they think they can get away with.
- 1stop 11y agoNo, if there are no expenses in the UK, then their UK revenue IS ALL profit. If their US company is wearing all the expenses then they get a tax saving there. They are trying to have their cake and eat it, and declare expenses in high tax regions and profit in low tax regions. Hence Ireland being popular. It's not complicated unless you actively start trying to move money around to avoid tax, which is what they all do.
- deleted 11y ago[deleted]
- junto 11y agoYou've missed my point. There is no point in levying a profit based corporation tax. I'm suggesting a straight internet sales tax, similar to VAT, rated to raise a revenue comparable to what the country is missing or on in terms of corporation tax.