Jump to content
House Price Crash Forum
Boom Boom

Google Pays 2.4% Tax

Recommended Posts

Many other large tech companies intend to follow suit.

I get so peeved when we're asked to target benefit fraudsters when the real culprits are those in suits.

Tax the greedy, not the needy.

Share this post


Link to post
Share on other sites

Can anybody explain to me how this happen's?

My understanding is a small UK company has it's profit's taxed at 21%.

If the company is foreign, are they exempt it from UK Corporation Tax? Shouldn't all companies trading in the UK pay UK Corporation Tax ?

and if no, WHY???

Share this post


Link to post
Share on other sites

My understanding is a small UK company has it's profit's taxed at 21%.

Sigh no story here to be honest. The banks probably pay as little tax as Google percentage wise, I bet no one knows how much profit they REALLY make from all their schemes.

Countless British retail chains have their headquarters abroad in countries like China and India, e.g Next's headquarters is in Hangzhou and it's huge. This is so they can lie about how much profit they make, they buy for pennies in China then tell the government it costed them 10 pounds per item to manufacture and import then they sell for 15 pounds, the government taxes them on 5 pounds of profit instead of 14.

Global companies tax avoid to the hilt and often independant shops can't compete with their scale so independants can't negotiate a lower shop floor rental cost or when it comes to branding new startups need a lot of capital to become trusted.

Share this post


Link to post
Share on other sites

Can anybody explain to me how this happen's?

My understanding is a small UK company has it's profit's taxed at 21%.

If the company is foreign, are they exempt it from UK Corporation Tax? Shouldn't all companies trading in the UK pay UK Corporation Tax ?

and if no, WHY???

Yes but not if you use the "double irish" basically google in the uk pays out a license fee to an irish corporation that mean it all its revenue is eaten up so it makes no "profit" in the uk or any other of its non us bases, the irish entity also offshores all that license income and ends up paying pretty much zero on it

all it really needs is the HRMC to actually call bulls**t actually you are making 1 billion a year in profit in the uk and I am going to give you a big bill ...

Share this post


Link to post
Share on other sites

The game has always been rigged. Personally I couldn't give a sh@t about benefit fraudsters. For their low intelligence they play a decent game. Its only us middle grounders who have the concept of fair play.....What a waste

Share this post


Link to post
Share on other sites

Yes but not if you use the "double irish" basically google in the uk pays out a license fee to an irish corporation that mean it all its revenue is eaten up so it makes no "profit" in the uk or any other of its non us bases, the irish entity also offshores all that license income and ends up paying pretty much zero on it

all it really needs is the HRMC to actually call bulls**t actually you are making 1 billion a year in profit in the uk and I am going to give you a big bill ...

This makes sense now, I'm disgusted.

Share this post


Link to post
Share on other sites

Sigh no story here to be honest. The banks probably pay as little tax as Google percentage wise, I bet no one knows how much profit they REALLY make from all their schemes.

Countless British retail chains have their headquarters abroad in countries like China and India, e.g Next's headquarters is in Hangzhou and it's huge. This is so they can lie about how much profit they make, they buy for pennies in China then tell the government it costed them 10 pounds per item to manufacture and import then they sell for 15 pounds, the government taxes them on 5 pounds of profit instead of 14.

Global companies tax avoid to the hilt and often independant shops can't compete with their scale so independants can't negotiate a lower shop floor rental cost or when it comes to branding new startups need a lot of capital to become trusted.

There was a recent post on ZeroHedge about this and that a lot of those enormous cash balances held by corporations are stuck offshore and won't be coming back unless some kind of tax amnesty can be agreed. For now the best bet is to join the capitalists at their game and invest in the multinational companies.

Share this post


Link to post
Share on other sites

all it really needs is the HRMC to actually call bulls**t actually you are making 1 billion a year in profit in the uk and I am going to give you a big bill ...

Ours is the same.

If we look like we're going to make any profit in the UK our internal buying costs go up to make sure we don't attract tax.

Either all companies pay or no companies should pay. but where you have international corps paying very little and local companies paying full whack you have to hope some international laws could be established. It effects all countries after all.

The shame of it is that most tax havens are old British colonies.

Share this post


Link to post
Share on other sites

I get so peeved when we're asked to target benefit fraudsters when the real culprits are those in suits.

Tax the greedy, not the needy.

While I agree with this, we can still do both no? But if we had to choose one (why?) then I would agree with you, the culprits are tax avoiders.

There was a good program on last week about the Cayman Islands tax haven, worth a watch:

http://www.channel4.com/programmes/dispatches/episode-guide/series-72/episode-1

Share this post


Link to post
Share on other sites

Whereas giants of the UK IT business such as Acorn and Sinclair pay booger all tax.

Don't really know about Sinclair but Acorn was ultimately a grand example of why being able to produce something good (at least until the early-mid 90s, when they started to fall behind) doesn't count for anything.

Share this post


Link to post
Share on other sites

Can anybody explain to me how this happen's?

My understanding is a small UK company has it's profit's taxed at 21%.

If the company is foreign, are they exempt it from UK Corporation Tax? Shouldn't all companies trading in the UK pay UK Corporation Tax ?

and if no, WHY???

Because the bent bastards who pass themselves off as our politicians have passed laws to allow the supa-wealthy + their Globalista companies to prey on each country, sucking out its wealth and putting virtually zero back into it. by (in their words) "LEGALLY" avoiding taxes.

There is nothing legal about these elitists thieving from the population in broad daylight.

Politico stooges and these companies should be vilified and personified as symbols of Elite fascism by the populations of the World.

Now comes a devastating expose by Jesse Drucker of Bloomberg about how Google is avoiding paying both U.S. and foreign taxes through the use of complex loopholes. The strategy, known as "income shifting," moves Google's profits through Ireland and the Netherlands to Bermuda. The article reports that these strategies have helped Google "reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries." That's a suspiciously low rate, to put it mildly, since Google is operating in nations where the average corporate tax rate is 20 percent.

A Google spokeswoman said that "Google's practices are very similar to those at countless other global companies operating across a wide range of industries." But as Drucker points out, many other U.S. companies actually pay a much higher rate of taxes on their foreign profits. (On the other hand, Google is right to some degree: A January 2009 GAO report found that of the 100 largest U.S. corporations, 83 have subsidiaries in tax havens.)

There is nothing illegal about all this. Google's income shifting is tax avoidance, not tax evasion."

Share this post


Link to post
Share on other sites

Don't really know about Sinclair but Acorn was ultimately a grand example of why being able to produce something good (at least until the early-mid 90s, when they started to fall behind) doesn't count for anything.

Even pinnacle of the business world Lord Sugar has a (tax avoidance?) company in the channel islands with which he can do a bit of offshoring.

Edited by erranta

Share this post


Link to post
Share on other sites

The game has always been rigged. Personally I couldn't give a sh@t about benefit fraudsters. For their low intelligence they play a decent game. Its only us middle grounders who have the concept of fair play.....What a waste

Exactly - recently the Elite run media have really stepped up a few gears laying into the poor every step of the way - whilst Trillions of pounds are leached out of the country due to bent laws given in favour of the wealthy elites and their Globalist rip-off, scamming companies!

Luckily most posters on HPC can now see thru their game - there are just a few stooges left who start the poor bashing threads & newer shit stirrers who try to get others riled up.

Share this post


Link to post
Share on other sites

I am sure that this is not a popular view here but I see this as a more complicated problem.

Taxpayers are rational and will do everything within the law to pay as little tax as possible.

States are rational and some prefer to take a small percentage of global incomes in taxes rather than relying solely on domestic taxpayers.

The end result is that some smaller nations (Ireland, Switzerland, Channel Islands, Netherlands, Cayman, Barbados, Malta etc etc) are prepared to scavenge for a small percentage of global taxes from taxpayers to make their citizens better off.

What happens next of course, is that the tax policies of these smaller states sets an upper bound on the size of the state for larger countries.

Share this post


Link to post
Share on other sites

Whereas giants of the UK IT business such as Acorn and Sinclair pay booger all tax.

Acorn Risc Machines

"As of 2007, about 98 percent of the more than one billion mobile phones sold each year use at least one ARM processor.[3] As of 2009, ARM processors account for approximately 90% of all embedded 32-bit RISC processors. ARM processors are used extensively in consumer electronics, including PDAs, mobile phones, digital media and music players, hand-held game consoles, calculators and computer peripherals such as hard drives and routers."

http://en.wikipedia.org/wiki/ARM_architecture

Share this post


Link to post
Share on other sites

Costs us hundreds of billions every year. Still like people on here would doubtless say it's not illegal.

you mean..it was budgeted by the treasury, but never arrived...surely the taxman should be on to this...every import has a manifest, goes through customs and VAT is paid at point of entry...cant be hard to check it all out.

remember the truth...a tax not collected costs US nothing..,,its the Government SPENDING that costs us.

If they havent collected tax...then they shouldnt be spending it.

Share this post


Link to post
Share on other sites

actually, the tax twostep/double Irish route does need to ensure that the group has a proper base in Ireland and must be a proper company, recent counsel's advice (and each case is different) is that a simple licence fee is becoming less acceptable to HMRC.

But generally, most corporations will be structured to be taxefficient - their directors have a statutory duty to minimise the tax paid (if a UK co)...... the usual way is to push debt down into the operating companies and run the equity chain up through offshore entities and limited partnerships (usually Cayman, Luxembourg or Cyprus) and then the debt interest repayment (at least) is usually non-taxable in those jurisdictions and if structured in the right form, will actually be classed as an equity distribution in the US (amongst others) and so no tax is payable there either......

there's nothing wrong with this - it's what directors of companies are legally obliged to do, i.e. act in the interests of their shareholders - they are doing it. This is not a socialist society.....,

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.