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Posts Tagged ‘corporate tax’

Starbuck balls: they’re becoming insane over this corporate tax dodging

TWO stories that show quite how insane people are becoming over this corporate tax dodging stuff. Both, of course, from the Mail. The paper that can indeed read the zeitgeit but never quite get the details correct.

The first, about Starbucks:

Starbucks’ UK sales during the year rose 4 per cent to £413.4million – the biggest increase since 2008.

But the company made a loss of £30.4million – after paying £26.5million to overseas subsidiaries in ‘royalty payments’.

It also paid £1.8million to other Starbucks companies as interest payments on loans made between divisions.

Think about the paying the royalty bit for a moment. If you open a coffee shop without the Starbucks brand are you going to get as much trade as if you open one with it? Quite: so the brand has a value and it’s right that that value be paid for. A Liverpool FC replica shirt is worth more than a Bath United one: the brand adds value to it.

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Posted: 3rd, July 2013 | In: Money | Comment | Comments RSS feed:RSS 2.0

Corporation Tax: Government hires contractor based in British Virgin Islands

YOU’VE got to hand it to the campaigners: they can get newspapers to print the most godawful rubbish these days. The latest complaint seems to be that a company is paying all the tax that is due. What Horrors!

Downing Street faces more flak over company tax arrangements after it emerged that a major Government contractor is funnelling profits into an offshore haven.

Telereal Trillium has a £3.2 billion contract to manage buildings such as job centres for the Department for Work and Pensions. It also manages property used by the DVLA.

While the company paid full UK corporation tax last year, it funnelled £163 million of its post-tax profits in the form of share dividends into a parent company based in the British Virgin Islands where there  is a zero rate of income and corporation tax.

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Posted: 3rd, July 2013 | In: Money | Comment | Comments RSS feed:RSS 2.0