Topic: | Re:Re:Re:Re:Should Chiswick Go Off-shore to Stop Tax Avoiding Chains? | |
Posted by: | Francis Rowe | |
Date/Time: | 13/11/15 14:43:00 |
I think most people would agree that it would be better that all kind of businesses paid a fair tax rate rather than some or all paying none but in a modern economy is that possible? Larger companies with international operations will always have the scope to use transfer pricing and will always have cleverer accountants and lawyers than the tax authorities. We may have to accept that the end game in this is that corporation tax will become a thing of the past. It is already resulting in undesirable distortions in the economy and resolving them will not be easy. It is also a double taxation in the sense that corporate profits are then taxed again when issued as dividends. With Government's struggling under such huge deficits this may be a hard decision for them to take but it should be remembered that, although there will be a fall in the taxes collected, directly taxing wealth creation less will mean more wealth creation and therefore more tax revenue from jobs, dividend payouts and a reduced benefits bill. As has been mentioned previously the alternative may be us ending up with an economy in which no corporation tax is paid anyway because it has become dominated by organisations that don't pay any. |