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We love GB, we do!

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    We love GB, we do!

    even proper companies get the GB treatment.... here's from the torygraph:

    UK companies languish high in world tax league
    By Malcolm Moore, Economics Correspondent (Filed: 13/09/2005)


    British companies pay more than twice as much in direct and indirect taxes than their counterparts in the US, according to the World Bank.

    The UK used to have one of the lowest corporate tax burdens in the first world. Now, only Holland, Italy and the Scandinavian countries tax their companies more.


    British businesses pay 52.9pc of their gross profits in one form of tax or another, the Bank said in its annual report - Doing Business in 2006. In the US, the rate is only 21.5pc; in Japan it is 34.6pc and in France it is 42.8pc.

    The Confederation of British Industry has repeatedly complained that businesses have been disproportionately hit by Gordon Brown. The CBI believes that in the period from when Labour came to power in 1997 to the end of this financial year, the rises in business taxes will have netted the Treasury an extra £51billion.

    John Cridland, the deputy director-general, called on the Treasury to hit the public with any future tax rises, rather than businesses. He said: "The Chancellor must look the voter in the eye if he needs to raise taxes again, and not impose any further on business. Companies cannot absorb tax hike upon tax hike."

    A spokesman for the Treasury said: "The UK is highly competitive on tax. In fact, on corporate income and employers' social security contributions as a percentage of GDP, the UK faces the second lowest burden in the OECD."

    The Bank also pointed out the complexity and effort of paying tax in the UK. In Hong Kong, companies pay two taxes, income tax and fuel tax, through one annual filing. In Britain, there are 22 separate payments to be made each year.

    The Bank said countries should consolidate the number of taxes, cut back on exemptions, simplify filing requirements and broaden the tax base by keeping rates moderate.

    It highlighted and praised the Eastern European countries for their flat tax reforms. Estonia started the trend in 1994, imposing a 26pc flat corporation tax.

    The Bank said the sums were calculated by taking a hypothetical and standardised company and drawing up a financial statement.

    "We then asked Price Waterhouse Coopers, the accountants, to make a list of all the tax payments and list the transactions, and then to take away the various deductions and exemptions," it said. "The US tax burden is lower than its corporation tax level because of the deduction for depreciation for example."

    The taxes that were taken into consideration include corporation tax, national insurance contributions, VAT, property and property transfer taxes, capital gains tax, dividend tax, financial transactions tax and vehicle tax.

    The report did not take into account some incentives that UK companies receive, such as the research and development tax credit.

    The UK ranked 9th in the world for its ease of doing business, with good corporate governance, a strong legal framework and only six procedures to start a company.


    Tax payable (% Gross profits)
    US 21.50%
    Japan 34.6%
    France 42.8%
    Germany 50.3%
    Sweden 52.6%
    UK 52.9%
    Italy 59.8%
    Denmark 63.4%
    Chico, what time is it?

    #2
    Yes but what's amazing is that high tax leads to a BOOMING economy. Since NL came to power, tax burden has gone up, but everyone is richer, their houses are millionaires and no one is unemployed. It's a miracle.

    Comment


      #3
      The obvious extrapolation is to raise taxes even more then the economy will boom even more. The CBI, eh, what do they know?

      Comment


        #4
        The issue is not the amount of tax per se, but whether the money are being well spent -- if the Govt was more efficient and indeed provided value for money, then yes, it may make sense to pay more taxes, but if the Gotv just hands it to the EDSs and Accentures of this world then fecking no - I think its a complete waste of money.

        Comment


          #5
          Actually business taxes for IT companies in Denmark are much lower than the UK.

          That number given for Denmark is just plain wrong, you only pay that if your accountants are complete planks. IIRC MacDonalds in Denmark paid the equivalent of a fiver in taxes a few years ago, and would suspect they actually make money from the government now.

          And then there is the case of Maersk, I know of one company that actually asked for the same tax breaks or would leave for China.
          Insanity: repeating the same actions, but expecting different results.
          threadeds website, and here's my blog.

          Comment


            #6
            Oi Rebecca if you have a problem living here or paying your taxes why don't you do a Zadie Smith and clear off....


            Chico in "sick of foreigners coming over here, avoiding tax and moaning" mode
            Sola gratia

            Sola fide

            Soli Deo gloria

            Comment


              #7
              I think the message is pretty damn clear from our government.

              If you want to run a business, make money, live a prosperous life, **** OFF out of Britain and hire abroad.

              Comment


                #8
                Chico, how do you feel about Brits moaning and not paying taxes?

                Comment


                  #9
                  Originally posted by DimPrawn
                  Chico, how do you feel about Brits moaning and not paying taxes?

                  Not as bad as I feel when foreigners are doing it!! You don't go to someone else's house and start slagging off his wife, the way he brings up his kids etc. Its just not cricket!!
                  Sola gratia

                  Sola fide

                  Soli Deo gloria

                  Comment


                    #10
                    Originally posted by Chico
                    You don't go to someone else's house and start slagging off his wife, the way he brings up his kids etc. Its just not cricket!!
                    Ah, you obviously never met my grandfather then
                    Autom...Sprow...Canna...Tik banna...Sandwol...But no sera smee

                    Comment

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