Comments on: Google and Corporation Tax http://timworstall.com/2009/04/19/google-and-corporation-tax/ It is all obvious or trivial except... Sun, 12 Feb 2012 10:09:58 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Brit.in.Aussie http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29637 Brit.in.Aussie Thu, 23 Apr 2009 07:09:11 +0000 http://timworstall.com/?p=7223#comment-29637 *sigh* Yes, Delaware. Now tell us all that this is *different* from the situation of the Single Market in the EU. Bet you won't. Tim adds: there is a difference. In Delaware the company still has to pay federal taxes even if there is no State corporate income tax. But as to the larger point, I wasn't trying to say that this was part of some federast plot to do down the UK. Rather the opposite. This is an inevitable outcome of the way that the EU is organised. And there are people (like Murphy) who love the whole idea of a federal Europe...but who then complain bitterly about one of thee inevitable consequences. *sigh* Yes, Delaware.

Now tell us all that this is *different* from the situation of the Single Market in the EU.

Bet you won’t.

Tim adds: there is a difference. In Delaware the company still has to pay federal taxes even if there is no State corporate income tax.

But as to the larger point, I wasn’t trying to say that this was part of some federast plot to do down the UK. Rather the opposite. This is an inevitable outcome of the way that the EU is organised. And there are people (like Murphy) who love the whole idea of a federal Europe…but who then complain bitterly about one of thee inevitable consequences.

]]> By: Brit.in.Aussie http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29617 Brit.in.Aussie Wed, 22 Apr 2009 06:36:05 +0000 http://timworstall.com/?p=7223#comment-29617 I am shocked, shocked that any multinational company would choose to minimize their tax bills by parking their company in one part of an economic area which has the lowest taxes. It's a EU federalist conspiracy against the UK, I tell ya! Its a good job that the United States doesn't allow this, which is why the State of Maryland doesn't have any offices outside of its borders despite its low corporate tax rates. Tim talks some complete euro-bollocks sometimes. Really. Tim adds: *Sigh*. Try Delaware, next state over..... I am shocked, shocked that any multinational company would choose to minimize their tax bills by parking their company in one part of an economic area which has the lowest taxes. It’s a EU federalist conspiracy against the UK, I tell ya!

Its a good job that the United States doesn’t allow this, which is why the State of Maryland doesn’t have any offices outside of its borders despite its low corporate tax rates.

Tim talks some complete euro-bollocks sometimes. Really.

Tim adds: *Sigh*. Try Delaware, next state over…..

]]> By: Roger Thornhill http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29591 Roger Thornhill Tue, 21 Apr 2009 11:47:21 +0000 http://timworstall.com/?p=7223#comment-29591 Of course the Federalists don't complain, as they expect to see the end of the Irish Treasury in the next decade or so along with the end of all National Treasuries. Of course the Federalists don’t complain, as they expect to see the end of the Irish Treasury in the next decade or so along with the end of all National Treasuries.

]]> By: Dennis The Peasant http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29579 Dennis The Peasant Mon, 20 Apr 2009 14:29:57 +0000 http://timworstall.com/?p=7223#comment-29579 Umbongo- The fact that is a non-story is precisely why the Sunday Times went to Richard Murphy in the first place... A competent, responsible Chartered Accountant wouldn't play the games Murphy does. Umbongo-

The fact that is a non-story is precisely why the Sunday Times went to Richard Murphy in the first place… A competent, responsible Chartered Accountant wouldn’t play the games Murphy does.

]]> By: Umbongo http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29577 Umbongo Mon, 20 Apr 2009 14:05:24 +0000 http://timworstall.com/?p=7223#comment-29577 News International must be in dire straits if the only tax consultant it knows who can get to the bottom of a plain vanilla tax avoidance structure (per Anon and Emil) is Richard Murphy. NI's auditors/tax advisers or any half-way decent bookkeeper - let alone a member of the Institute of Chartered Accountants who (as Dennis the Peasant notes) appears to have some difficulty with basic accounting and tax principles - could have told the Sunday Times what it wanted to know ie that this is a non-story News International must be in dire straits if the only tax consultant it knows who can get to the bottom of a plain vanilla tax avoidance structure (per Anon and Emil) is Richard Murphy. NI’s auditors/tax advisers or any half-way decent bookkeeper – let alone a member of the Institute of Chartered Accountants who (as Dennis the Peasant notes) appears to have some difficulty with basic accounting and tax principles – could have told the Sunday Times what it wanted to know ie that this is a non-story

]]> By: Dennis The Peasant http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29576 Dennis The Peasant Mon, 20 Apr 2009 12:41:40 +0000 http://timworstall.com/?p=7223#comment-29576 As a CPA, I would love to see the "documents" given to Murphy that served as a the basis of his [shudder] "analysis". Given Murphy's frequent (and usually losing) battles with basic accounting and taxation concepts, I'd be less than completely surprised if the numbers he comes up with wouldn't stand scrutiny. In any event, his analysis is the standard Murphy mix of fantasy and garabage: Evil multinationals are destroying the world and starving the children by not paying taxes that are not owed. Thank God you've got him. It's bad enough here with Obama... As a CPA, I would love to see the “documents” given to Murphy that served as a the basis of his [shudder] “analysis”. Given Murphy’s frequent (and usually losing) battles with basic accounting and taxation concepts, I’d be less than completely surprised if the numbers he comes up with wouldn’t stand scrutiny. In any event, his analysis is the standard Murphy mix of fantasy and garabage: Evil multinationals are destroying the world and starving the children by not paying taxes that are not owed.

Thank God you’ve got him. It’s bad enough here with Obama…

]]> By: Emil http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29560 Emil Sun, 19 Apr 2009 16:52:32 +0000 http://timworstall.com/?p=7223#comment-29560 Anon, Mostly correct, except that in places in the world that are not part of the EU you'd have to pay withholdingtaxes and other evil stuff . So it is indeed EU induced Anon,

Mostly correct, except that in places in the world that are not part of the EU you’d have to pay withholdingtaxes and other evil stuff . So it is indeed EU induced

]]> By: Anon http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29558 Anon Sun, 19 Apr 2009 16:26:26 +0000 http://timworstall.com/?p=7223#comment-29558 This issue is not EU derived. The manner in which Google has arranged its affairs is for them to have a non-UK co (could be anywhere, in Ireland, elsewhere in the EU, or further afield) which has a business suitably controlled from outside of the UK, together with a local, rep office company situated in the UK. Google is not trading in the UK but, rather, trading with the UK. So, the self proclaimed expert has unearthed nothing more than a classical cross border trading structure which has been widely adopted for decades. If the foreign co, in this case the Irish one, had a branch (strictly, a permanaent establishment) in the UK, the profits attributable thereto would, indeed, be liable to UK corporation tax, but to offer up the possibility as a ground of challenge is laughable. Google and its advisers would have made their arrangements bombproof in this regard, and HMRC would know as much. This issue is not EU derived. The manner in which Google has arranged its affairs is for them to have a non-UK co (could be anywhere, in Ireland, elsewhere in the EU, or further afield) which has a business suitably controlled from outside of the UK, together with a local, rep office company situated in the UK.

Google is not trading in the UK but, rather, trading with the UK. So, the self proclaimed expert has unearthed nothing more than a classical cross border trading structure which has been widely adopted for decades.

If the foreign co, in this case the Irish one, had a branch (strictly, a permanaent establishment) in the UK, the profits attributable thereto would, indeed, be liable to UK corporation tax, but to offer up the possibility as a ground of challenge is laughable. Google and its advisers would have made their arrangements bombproof in this regard, and HMRC would know as much.

]]> By: Laban http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29557 Laban Sun, 19 Apr 2009 13:16:18 +0000 http://timworstall.com/?p=7223#comment-29557 If that's correct, Tim, all small UK IT consultancies should close down and open again in the Republic. Although as a small business the rate would be 20-odd percent rather than 28, 12.5% is still a decent reduction. If that’s correct, Tim, all small UK IT consultancies should close down and open again in the Republic. Although as a small business the rate would be 20-odd percent rather than 28, 12.5% is still a decent reduction.

]]> By: FrancisT http://timworstall.com/2009/04/19/google-and-corporation-tax/comment-page-1/#comment-29550 FrancisT Sun, 19 Apr 2009 11:17:45 +0000 http://timworstall.com/?p=7223#comment-29550 Google is far from the first company to do this. Dell has been doing this for quite a while and I'm sure there are many others too. Google is far from the first company to do this. Dell has been doing this for quite a while and I’m sure there are many others too.

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