Here’s the solution according to the Murphmeister:
That “to” is vital. If the claim that Amazon is in Luxembourg and exports products into the UK when an order is placed on amazon.co.uk is treated as risible, as the PAC did earlier this week, then the UK derived profits of Amazon Luxembourg can be taxed in the UK as it can be deemed to have a branch (or “permanent establishment”) here in the UK. The same could be done to Google Ireland. It’s profits arising in the Uk could be taxed here.
It’s time to make that challenge and change the law on tax residence if need be so that we can clearly state that these companies are trading in the UK – as is so very obviously true.
That does not require international consent.
It does require international consent. Because we’re in the EU. And EU law specifically and exactly states that we have a Single Market. And any one company in any one country within the EU can sell to any consumer or business anywhere in that EU from that one company in one country. VAT is payable at the rate where the consumer resides and delivery takes place (except, weirdly, on digital goods). Corporation tax is payable in the country where the one company is resident and at the rate of that country.
And that’s it.
To try and legislate differently within the UK would run smack into the brick wall of EU legislation. As with what happened over Vodafone, recall? There the argument was, quite simply, whether EU law over rides the UK’s CFC laws or not. The answer being “Yes, fuckwits, that’s what EU law means”.
The UK cannot make, promulgate or impose any laws regarding the tax residence or domicile of a company which violate EU laws on the same subject. ‘Coz we’re in the EU, see?