An absurd story on Formula One tax dodges
THIS absurd tax story is brought to you by The Independent:
The standard rate of corporation tax in the UK is 24 per cent of a company’s profit. The F1 teams tend to avoid this because they spend all of the money they receive in a bid to boost their chances on track. Breaking even or making a loss means that they don’t need to pay tax as there is no profit for it to be charged on.
Yes, they really have said that these companies are avoiding tax by the simple method of not making a profit. Not, they don’t owe any tax because they’ve not made a profit but that they avoid tax.
There’s something seriously broken with the way these tax stories are being reported you know. And no wonder it’s so easy for the tax campaigners like UK Uncut to get into the newspapers. None of the people writing the papers actually understand the subject at issue: thus they’re suckers for any nonsense that someone wants to spout.
In fact, all of the cases that UK Uncut have been shouting about have been entirely legal. And not just legal but entirely reasonable too. The whole lot of them, Boots, Vodafone, Topshop, the lot, they managed to get people whipped up about absolutely nothing at all. And all because we’ve got fools writing the newspapers who think that not making a profit is “avoiding” tax.