UK Tax Shambles - The 'Immoral' Tax Avoiders, Amazon, Starbucks and Google

The Daily Mail has done a piece on the avoidance schemes of 3 big corporations where only 6 million pounds has been paid in taxation between the 3 of them in 2011 despite billions in turnover.

The 'immoral' tricks used by corporate giants to avoid UK tax were laid bare yesterday.
Executives from Google, Starbucks and Amazon revealed how they base operations offshore and route profits to tax havens.

They had been summoned by MPs to explain why they contribute little or nothing to the Treasury's coffers. In a three-hour inquisition:

Google admitted funnelling profits to a company in the tax haven of Bermuda;
Starbucks said it had a deal with the Dutch government to minimise its tax bill and 'buys' coffee through Switzerland even though the beans never touch Swiss soil;
Amazon admitted basing its European operations in Luxembourg because of the low tax there;
The internet giant also claimed not to know its UK turnover.

Please read full arfticle

www.dailymail.co.uk... tml


It is all well the MPs moaning about this, but it is them that set the law and it is them that let them get away with it, whilst the little guy at the bottom bears the burden of taxation. Something needs to be done about this, the first thing obviously is to boycott all 3 companies.

Ok I'am with you on this, just closed chrome and opened firefox, I will not use amazon nor starbucks anymore.
You are right it is just out of order and just plain wrong and unfair.
I hope many more people do this.

reply to post by michael1983l


The thing is they have us over a barrel. The best thing to do would just be charge the lowest rate of corporation tax in Europe, making it more attractive set up and pay here rather than avoid it. A little bit of something is better than nothing I guess. Still my argument is that as these companies rely on the infrastructure of this nation to operate, they are morally bound to pay their taxes like everyone else. The infrastructure paid for by taxes by the way.

The reason why these big companies operate in the uk, is because t is a safe place, you have a sound legal system, police force and fire department. Well maintained infrastructure a reasonably educated population and the other freedoms that come along with operating in an established democracy. Now all those things have to be paid for. They ave been paid over time by taxation. Now if we were all to avoid that tax, we would have none of the things mentioned and would be a third world state, where the likes of google, amazon and Starbucks don't operate.

It seems some people have trouble working that concept through.

Ah the "too big to fail" mentality. First it was the banks, they got away with it pretty much. We need the banks to keep people civilized and the world to keep turning I guess

These are some of the big guys.

Google is already on a slippery slope in my opinion. To get caught with this is another slap in the face to people who invested and lost any money with them. They should be furious Google is dodging taxes after losing many people money.

reply to post by michael1983l


Stopped using google and all of their products ages ago (unless i rip something from youtube )

Fastbucks coffee tastes like dishwater so haven't drunk that in years either.

Amazon, have never used them as i've always found what i want cheaper elsewhere.

so yeah i'm all for boycotting.

Cant believe matey from fastbucks reckons they dont make any money in the UK, what an utter crock of s**t, Yeah as head of the UK division, you made no money so they made you ooverall boss, does he really think we are all that stupid

To me what is described in this article constitutes FRAUD not just 'immoral' practices.

Kick with out of the UK? Bunch of free loading mongrels. The evils of the share market, pleasing investors and executives receiving bonuses.

Government should force them to pay their fair share. No-one is asking them to pay more than they should, just their fair share. This is why this country is flat broke - too many taking out of the system or not contributing at all, and not enough funding it.

Government has to make them pay their taxes, the working man is unable to pay more than he is already. Anyway, a vast amount of working people are on top up benefits and pay no tax, because these corporations refuse to pay more than minimum wage which is insufficient to live on.

And while I'm on my soapbox, the politicians stand need to moan about corporations dodging their taxes, when they themselves have luxurious lifestyles paid for by taxpayers while their own personal wealth sits untouched. Bring back the days of proper politicians who did the job because they wanted to make a difference, and not in the job for the easy money.

Didn't JFK forfeit his pay while President?

reply to post by doobydoll


I concur, I think it is pretty bad that these companies get away with it but I think it is even worse that our government doesn't make the law so they cannot get away with it. It's not like Starbucks can just boycott Britain is it, either that want to trade here or they don't, if they leave Costa will just take up the slack. I want to hear of the UK changing its corporation taxation to reference UK turnover rather than profit. After all the government doesn't care if my personal budget is in deficit, they still tax me regardless, why should it be any different for multinationals?

The fact that this has been going on for so many years, using "loopholes" in the law, which are of course there by design to allow such practices for big business, shows the contempt the politicians have for the taxpayers of this country.
All that lobbying by big corporations sure does seem to pay off, and it has to end, right now.

If those corporations want to do business here then they should pay the price. After all, it's not a case that they wouldn't be making money, just that they wouldn't be making as much. So this is down to pure greed by those corporations and their big shareholders. The tax shortfall therefore has to be made up elsewhere, and it's always the little guy, small businesses and the public taxpayers who get stung because of the greed of the rich.

If they don't like paying the taxes here then tough, leave, we got along just fine before and we'll be just fine when they are gone. It's not like they contribute much anyway!

It's also time to outlaw lobbyibg completely. It has been shown time and time again to be riddled with corruption at high levels and should be stopped right now. Any politician found meeting with corporate representatives, outside of their specific duties, and in secret without transcripts of those discussions should be sacked and jailed.

This is a outrage !

Starbucks has also lied about its profits and claimed that it has not made a profit in the UK for 15 years

But you all know how this will turn out, the benefit scroungers will be blamed so we turn against each other. We should not be purchasing from these businesses but with Farther shop-mas around the corner I am sure business will be booming.

As the more you buy the happier you will be

reply to post by michael1983l


It's the fault of government that corporations are getting away with it. I say let corporations pull their business out of our country if they object to paying their fair share, we don't need them so badly. They cost our country more money to operate here than they contribute anyway, through not paying taxes, and through their employees having to claim top-up benefits to survive.

We wouldn't be much worse off without them, we'd still be broke, but they'd be plenty worse off without us.

reply to post by doobydoll


Think of it this way... is Starbucks get in a huff and quit the country, there would be an immediate opening for others to step in and open small cafe's and coffee shops. The void would be filled and jobs created. We don't need them here.

I have just started an e-petition on the government website requesting large multinationals to have their taxation calculated on turnover rather than profit. Once it is authorised I will post the link here, if it is not against the T&Cs.

Originally posted by doobydoll
reply to post by michael1983l

 

It's the fault of government that corporations are getting away with it. I say let corporations pull their business out of our country if they object to paying their fair share, we don't need them so badly. They cost our country more money to operate here than they contribute anyway, through not paying taxes, and through their employees having to claim top-up benefits to survive.

We wouldn't be much worse off without them, we'd still be broke, but they'd be plenty worse off without us.

The US government kind of decided they were making the decisions on our behalf, whats sad is they kind of have our own armed forces in their pocket now to continue business as usual on the world stage. With so much debt, its no wonder why they choose to take payoffs from the bigger corporations. Turning a blind eye to corruption and making laws knowing full well of the numerous loopholes that only those corporations can take part in.

I'm convinced the crime bosses that basically owned cities back in the day have infiltrated their way into our government. I really can't see any other way a lot of these scumbags get away with a fraction of what they get away with.

Money is a dangerous commodity. And it isn't worth the paper its printed on.

Originally posted by Britguy
reply to post by doobydoll

 

Think of it this way... is Starbucks get in a huff and quit the country, there would be an immediate opening for others to step in and open small cafe's and coffee shops. The void would be filled and jobs created. We don't need them here.

We certainly don't need them here. No one needs them anywhere. They are a burden to us. They poison our economy and ecology, and governments worldwide do nothing to stop them.

Government has allowed them to ruin everything, now it is left holding the buck and no-one to pass it to, and rightly so.

Corporation 1, government 0.

Sound just right for my country, let the billion pound company get away with paying next to nothign in tax - But arrest, fine and even inprison a single parent who can;t afford to live so he/she/they falsly claimed a few thousand pounds over the years.

Makes me #ing sick, the blame and responsability is always put onto the little persons shoulders. I wont be using none of these products and can only hope others do the dame

reply to post by n00bUK


But if these companies paid their fair share then the little man wouldn't have to pay as much tax and wouldn't need to fiddle the system. By the way those that do fiddle the system are no better than these multinationals. Why should those that are dishonest get an easier ride than those honest ones that just struggle on?

Tax evasion and tax avoidance by large corporations and those in the upper tax bracket costs this country an approximate £120billion per annum.
HMRC and successive governments have been actively complicit in allowing this to happen and continue.

Rather than concentrate on fixing these loopholes and fiddles the governement prefers to demonise benefit recipients and to target the most vulnerable and needy in our society.

By focusing on benefit fraud and benefit loopholes it is estimated that the government could save up to £6billion per annum.
So effectively this government would prefer to cause untold misery and discomfort on those already suffering hardship to claw back 5% of what could be saved if they concentrated on enforcing existing tax laws and plugging tax loopholes.

reply to post by Freeborn



Couldn't have said it better myself my friend.