Comments on: More Tesco Tax and the Guardian http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/ It is all obvious or trivial except... Thu, 24 May 2012 18:16:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Learn from the mistakes of others. You can’t live long enough to make them all yourself. – Eleanor Roosevelt « Margherita Roser http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-35761 Learn from the mistakes of others. You can’t live long enough to make them all yourself. – Eleanor Roosevelt « Margherita Roser Mon, 19 Oct 2009 01:15:10 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-35761 [...] been very carefully planned and carried out in order for them to be successful. Fellow blogger, Tim Worstall, highlights [...] [...] been very carefully planned and carried out in order for them to be successful. Fellow blogger, Tim Worstall, highlights [...]

]]> By: Learn from the mistakes of others. You can’t live long enough to make them all yourself. – Eleanor Roosevelt « Margherita Roser http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-35582 Learn from the mistakes of others. You can’t live long enough to make them all yourself. – Eleanor Roosevelt « Margherita Roser Fri, 16 Oct 2009 06:53:44 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-35582 [...] been very carefully planned and carried out in order for them to be successful. Fellow blogger, Tim Worstall, highlights [...] [...] been very carefully planned and carried out in order for them to be successful. Fellow blogger, Tim Worstall, highlights [...]

]]> By: Margherita Roser http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-35581 Margherita Roser Fri, 16 Oct 2009 06:39:14 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-35581 [...] been very carefully planned and carried out in order for them to be successful. Fellow blogger, Tim Worstall, highlights [...] [...] been very carefully planned and carried out in order for them to be successful. Fellow blogger, Tim Worstall, highlights [...]

]]> By: Tax Research UK / Tescos: the Zug deal is tax avoidance http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-13176 Tax Research UK / Tescos: the Zug deal is tax avoidance Sun, 01 Jun 2008 08:27:13 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-13176 [...] this morning concerning my analysis of Tesco’s financing operation in Zug in Switzerland by Tim Worstall who had this to [...] [...] this morning concerning my analysis of Tesco’s financing operation in Zug in Switzerland by Tim Worstall who had this to [...]

]]> By: Peter Risdon http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-13175 Peter Risdon Sun, 01 Jun 2008 08:23:54 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-13175 The legal power to unroll transactions or structures if they have been shown to have been 'devices' merely designed to circumvent the law is found beyond tax matters. For example, if I use such transactions to asset strip a business, then put it into liquidation, a receiver can take action to recover assets. This is what R.Murphy referred to above when he typed: '... the structure adopted has no economic substance and has no commercial justification'. It isn't specifically a tax provision at all, it's an anti-fraud power with fairly wide applicability. Despite the bluster, Murphy's comment actually made no attempt to challenge the particular point of fact it was apparently designed to contradict. In other words, he was operating his fog machine. The legal power to unroll transactions or structures if they have been shown to have been ‘devices’ merely designed to circumvent the law is found beyond tax matters.

For example, if I use such transactions to asset strip a business, then put it into liquidation, a receiver can take action to recover assets. This is what R.Murphy referred to above when he typed: ‘… the structure adopted has no economic substance and has no commercial justification’. It isn’t specifically a tax provision at all, it’s an anti-fraud power with fairly wide applicability.

Despite the bluster, Murphy’s comment actually made no attempt to challenge the particular point of fact it was apparently designed to contradict.

In other words, he was operating his fog machine.

]]> By: BlacquesJacquesShellacques http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-13159 BlacquesJacquesShellacques Sat, 31 May 2008 15:22:48 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-13159 "...when it is obvious that the structure adopted has no economic substance and has no commercial justification..." Hallo Murphy. You shouldn't comment here and say something stupid because even though you won't allow my comments on your stupid posts on your own site, I'm sure Tim will let me rant. I expect Tim knows, as does anyone but a quarante-watt, that your phrasing above applies to every transaction, internal, external, domestic or international. That's why Tim mentioned that a 6% rate is commercially reasonable. Every business person in every country knows you cannot pay for anything at stupid rates or without good reason without exciting the revenuers. It's so obvious most of us don't bother to mention it. Tim actually made a concession to the dolts among us with his short comment on the 6% rate. Pity you didn't understand it. “…when it is obvious that the structure adopted has no economic substance and has no commercial justification…”

Hallo Murphy. You shouldn’t comment here and say something stupid because even though you won’t allow my comments on your stupid posts on your own site, I’m sure Tim will let me rant.

I expect Tim knows, as does anyone but a quarante-watt, that your phrasing above applies to every transaction, internal, external, domestic or international. That’s why Tim mentioned that a 6% rate is commercially reasonable.

Every business person in every country knows you cannot pay for anything at stupid rates or without good reason without exciting the revenuers.

It’s so obvious most of us don’t bother to mention it. Tim actually made a concession to the dolts among us with his short comment on the 6% rate. Pity you didn’t understand it.

]]> By: Kay Tie http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-13158 Kay Tie Sat, 31 May 2008 15:16:59 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-13158 "Oh dear, Tim. You really do not know a lot about tax, do you?" "Mr. Pot, you're black!" said Mr. Kettle. “Oh dear, Tim. You really do not know a lot about tax, do you?”

“Mr. Pot, you’re black!” said Mr. Kettle.

]]> By: Richard Murphy http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-13155 Richard Murphy Sat, 31 May 2008 11:48:52 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-13155 Oh dear, Tim. You really do not know a lot about tax, do you? Your comment that 'only repatriated foreign profits are subject to UK tax (at least as far as I know)' should have been the point at which you stopped commenting. Because the fact is that this showed you do not know. Controlled foreign company legislation ensures that the Uk can, and does, charge companies operating outside the Uk but controlled by UK corporations to tax when it is obvious that the structure adopted has no economic substance and has no commercial justification. It is not alone. Most countries have similar legislation, including some of the so caled 'flat tax' states. Oh dear, Tim. You really do not know a lot about tax, do you?

Your comment that ‘only repatriated foreign profits are subject to UK tax (at least as far as I know)’ should have been the point at which you stopped commenting. Because the fact is that this showed you do not know.

Controlled foreign company legislation ensures that the Uk can, and does, charge companies operating outside the Uk but controlled by UK corporations to tax when it is obvious that the structure adopted has no economic substance and has no commercial justification.

It is not alone. Most countries have similar legislation, including some of the so caled ‘flat tax’ states.

]]> By: KMcC http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/comment-page-1/#comment-13146 KMcC Sat, 31 May 2008 09:58:01 +0000 http://timworstall.com/2008/05/31/more-tesco-tax-and-the-guardian/#comment-13146 Allow me to explain. Tesco is a BIG company. It makes lots of profit. Profits, as any Guardian reader can tell you, is just another word for stealing. So if Tesco doesn't voluntarily give all its profits to the state for cleansing and then distribution to Labour voters, it's compounding the stealing with cheating. Bad Tesco - all its money, like your money and my money, really belongs to the government. I hope this makes it clear Allow me to explain.

Tesco is a BIG company. It makes lots of profit. Profits, as any Guardian reader can tell you, is just another word for stealing. So if Tesco doesn’t voluntarily give all its profits to the state for cleansing and then distribution to Labour voters, it’s compounding the stealing with cheating. Bad Tesco – all its money, like your money and my money, really belongs to the government.

I hope this makes it clear

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