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Kellogg's Says Tax Clampdown Will Harm Profits

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http://www.theguardian.com/business/2015/apr/05/kelloggs-says-google-tax-clampdown-will-harm-profits

Kellogg’s has warned that its profits could be hurt by the international drive against tax avoidance, which is targeting structures that benefit multinationals.

The US-based maker of Corn Flakes, Rice Krispies and Coco Pops is worried that attempts to close tax loopholes would lead to a “material” increase in its income tax bill.

The chancellor, George Osborne, promised last month that government measures against tax avoidance would raise £3.1bn for the public purse, including a so-called Google tax aimed at profits that are shifted abroad by multinationals to avoid payments to HM Revenue and Customs. The UK is targeting tax structures used by international companies as part of a broader campaign led by the OECD - the economic thinktank for developed nations - to limit tax avoidance and use of offshore tax havens.

Although alternatively you could say to shareholders for years we've got away with paying you over and above the market rate, soon you'll have to accept market rate profits as we've got tax to pay?

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Feed the horse enough oats and eventually some will work its way through for the sparrows to eat, along with copious amounts of dejection.

J. K. Galbraith's 'horse and sparrow' theory of tax and income, otherwise known as trickle-down economics.

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I find it funny to hear politicians complain about tax loopholes as if it weren't them writing the laws anyways.

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It's true that paying taxes leaves you with less money than you had before you paid those taxes- the mystery is why Kelloggs feel the need to state the bleedin' obvious in this way.

To be fair the idea of paying one's taxes is maybe something of a novelty in corporate circles, so maybe this is big news to them, if not to the rest of us.

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I would imagine that the actual story is that Osbornomics, impoverishing millions of working families, have dented Kellogg's profits.

We only eat Aldi/Lidl cereal here after having bought kelloggs previous to 2010.

However the self-serving criminality of these executives means that they are willing to damage the companies they work for rather than reign in their 'entitlement'.

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it's laughable that they say taxes will harm profits. Taxes are paid ON the profits they earn. Therefore, taxes do NOT harm profits one iota. It seems they've become so used to not paying full-on taxes that they see taxes as an "expense" now.

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Kelloggs has warned that its profits could be hurt by the international drive against tax avoidance,

They probably had to pay a management consultant hundreds of millions to come up with that amazing revelation.

By coincidence the expert consultants were able to release their conclusions just before the general election

Edited by billybong

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