Reply to: AstraZeneca Paying No UK Corporation a Tax

[AtW]

And the clever chap who came up with that will get a tasty bonus. Just like the team at Volkswagen who coded the emissions test subroutine.

Chances are that both will be "retired"...

suity should run while he can...

[PurpleGorilla]

Which leads to the Big Co with a UK revenue of £10bn, but buys a paper clip from it's office in the Cayman islands, for £2bn, wiping out the profit. UK tax paid zero.

Of course there is the corp tax to pay on the paper clip, which is charged at the Cayman island rate of 0%.

So that is all okay then?

And the clever chap who came up with that will get a tasty bonus. Just like the team at Volkswagen who coded the emissions test subroutine.

[_V_]

Corporation tax is paid on profit, not on revenue. There's a simple calculation for working it out that doesn't rely on your opinion.

Which leads to the Big Co with a UK revenue of £10bn, but buys a paper clip from it's office in the Cayman islands, for £2bn, wiping out the profit. UK tax paid zero.

Of course there is the corp tax to pay on the paper clip, which is charged at the Cayman island rate of 0%.

So that is all okay then?

[VectraMan]

On £1.6bn of revenue, IMHO they should be paying more than £0.00 in corporation tax.

Otherwise, what is the point of Corp Tax? To scr€w small business?

Corporation tax is paid on profit, not on revenue. There's a simple calculation for working it out that doesn't rely on your opinion.

[PurpleGorilla]

Rolls-Royce has a huge presence in the UK. They directly employ over 21,300 people, and through their supply chains and employee spending support around 106,000 people. That accounts for about one in every 300 UK jobs.

So if we take the average wage as 26.5K then RR economic activity in the UK contributes conservatively £800 million to HMRC per year (Employer and Employee taxes). Do we really want to persuade them to FO to more grateful countries?

On £1.6bn of revenue, IMHO they should be paying more than £0.00 in corporation tax.

Otherwise, what is the point of Corp Tax? To scr€w small business?

[AtW]

So if we take the average wage as 26.5K then RR economic activity in the UK contributes conservatively £800 million to HMRC per year (Employer and Employee taxes). Do we really want to persuade them to FO to more grateful countries?

No.

Personally I think UK companies should have deduction from corporation tax due made from other taxes they generate - employer NICs, employee income tax/NICs, business rates etc - all that should be taken into account before charging corporation tax on profits.

[Gibbon]

Rolls-Royce has a huge presence in the UK. They directly employ over 21,300 people, and through their supply chains and employee spending support around 106,000 people. That accounts for about one in every 300 UK jobs.

So if we take the average wage as 26.5K then RR economic activity in the UK contributes conservatively £800 million to HMRC per year (Employer and Employee taxes). Do we really want to persuade them to FO to more grateful countries?

[Zero Liability]

Get the pitchforks out.

[PurpleGorilla]

AstraZeneca Paying No UK Corporation a Tax



http://www.ft.com/cms/s/0/46aa42bc-b...#axzz3nhTe9d3s

[AtW]

Poor reporting yet again. Global profits of £4.5 billion, but their Dutch sandwich only generates a tax-deductible interest payment of £140m? Sensationalised for the masses.

If UK division is not profitable for them, then why are they keeping it???

[PurpleGorilla]

So did they make any profit or not? Seems to me rather than whining about not paying UK tax on global profits (like anybody is meant to) journalists should properly investigate the accounts.

Sure they made a loss in the UK. Might as well wrap the UK operation up if it is so unprofitable...

[MrMarkyMark]

As I said earlier, this bit was of particular interest.
I'm guessing they wouldn't be doing it, or employing Ian Brimicombe if it was not well worth their while.

AstraZeneca’s top tax accountant, Ian Brimicombe, sat for several years on a Treasury committee advising the government on the changes in the law. Without one alteration, which came into force almost three years ago, the group’s avoidance structure would not have worked.

[VectraMan]

“The use of this UK government-sponsored regime for tax planning purposes did not produce any tax savings for AstraZeneca. In 2013 and 2014, the AstraZeneca UK group of companies was not profitable due to patent expirations and continued investment in the research and development of new medicines.”

So did they make any profit or not? Seems to me rather than whining about not paying UK tax on global profits (like anybody is meant to) journalists should properly investigate the accounts.

[BlasterBates]

The reason Atrsa Zeneca doesn't pay much tax in the UK is the fact that the US claim it's US tax, because most of their sales are in the US.

UK loses out to US in AstraZeneca tax row - Telegraph

[BrilloPad]

HMRC(and their puppets the government) could easily fix this.

Instead they harass ordinary working contractors who use legitimate avoidance schemes(dividends and expense claiming) to earn a fraction of what they could through going after large companies.

But don't worry! Help is at hand! IPSE are going to arrange sending letters to MPs. Panic over.

Carry on...