Reply to: Margaret Hodge's family company pays just 0.01pc tax on £2.1bn of business

[AtW]

Yes if it is a publicly listed company and answerable to shareholders. If its majority privately held, it can always pay a third party company based in Cayman Islands for "services"and thus reduce the profit to nothing and pay no tax on profits. But that company based in a tax haven makes a profit and distributes the cash to its "shareholders".

Such payments should not be tax deductable, there are already laws regarding transfer pricing since payments are being made to essentially same companies - it's not bona fide arrangement in my view.

[fullyautomatix]

I did not miss anything - company with billions turnover should be making sizeable profits (and pay corp tax on those) or go bust. If such company isn't making profits for shareholders then board of directors should be fired.

Yes if it is a publicly listed company and answerable to shareholders. If its majority privately held, it can always pay a third party company based in Cayman Islands for "services"and thus reduce the profit to nothing and pay no tax on profits. But that company based in a tax haven makes a profit and distributes the cash to its "shareholders".

[AtW]

If tax was paid on turnover there would be very few businesses left, because the tax would far exceed profits, resulting in perpetual losses.

"Political pressure to change the way foreign firms are taxed in Britain increased this weekend after the head of the Public Accounts Committee and a former City minister said the option of a “revenue tax” should be seriously considered. "

New push on foreign firms’ tax - Telegraph

If you ask me losses should not be tax deductable - if firm loses money then it's matter for shareholders/directors, if it makes profit it should pay tax on it. Perhaps that would make investors favour actual firms that are profitable.

[AtW]

You're doing it again. You missed the point that tax is paid on profits, not on turnover.

I did not miss anything - company with billions turnover should be making sizeable profits (and pay corp tax on those) or go bust. If such company isn't making profits for shareholders then board of directors should be fired.

[xoggoth]

I see the linked page has gone from the DT. Never mind, you can usually find details of all the dodgy things our lords and masters have been up to David Icke's page. The giant lizard stuff is not important in my view, I think he does the British public a great service.

[Bunk]

"Stemcor was founded by Mrs Hodge’s father Hans Oppenheimer more than 60 years ago."

They pick out the German sounding name...

"more than 60 years ago"

...so that would have been in the 40s.

Yup, she is nazi by derivation and should pay more tax.

Pile of tulipe.

The name Oppenheimer also brings to mind the Manhattan Project. Therefore she's also involved in building weapons of mass destruction.

This shoddy journalism malarkey is easy

[Doggy Styles]

So you think people run businesses with a loss are somebody good businessmen?

Only in a sense of avoiding paying taxes maybe

You're doing it again. You missed the point that tax is paid on profits, not on turnover.

If tax was paid on turnover there would be very few businesses left, because the tax would far exceed profits, resulting in perpetual losses.

[kingcook]

Corp tax surely is 20% for wee businesses?

He's talking about the 10% tax credit on the dividend, not the 20% rate of corp tax.

[SueEllen]

No surprise there. Margaret Hodge - Wikipedia, the free encyclopedia

Yet another fu-3ing name changing foreigner in the government working for their own gain.

An easy way for a woman to change her name is to get married. Even if she gets divorced unless she is about to get remarried she can choose to keep that guy's name. Cheryl Cole is an example of this.

[AtW]

Actually you paid 10% tax on most of it, but you paid it with a tax credit.

Corp tax surely is 20% for wee businesses?

[AtW]

Plenty of companies turn over billions and make a loss. Are you sure you're cut out for this business lark?

So you think people run businesses with a loss are somebody good businessmen?

Only in a sense of avoiding paying taxes maybe

[minestrone]

Oh dear. They were German Jewish, that's why they left. Top daily mail reporting that.

farce

[doodab]

I paid 0% tax on my personal income last year of ~£42K (combo of salary + dividends).

Do I get a prize?

Actually you paid 10% tax on most of it, but you paid it with a tax credit.

[kingcook]

I paid 0% tax on my personal income last year of ~£42K (combo of salary + dividends).

Do I get a prize?

[minestrone]

No surprise there. Margaret Hodge - Wikipedia, the free encyclopedia

Yet another fu-3ing name changing foreigner in the government working for their own gain.

Both sides of my family had to change names to fit in, On my mother's side Baroness had to be shifted to Barnes in the 40s as it was too German, the Irish side which had a French Norman name was anglicised when my great grandfather came across from Ireland to fight for the British in the Boer war.

You can ram that comment up where the sun don't shine. I'll do it for you.