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Different rates of rates.

Income, Corporation, Capital Gains, Inheritance Taxes, VAT and so on.

Different rates of rates.

Postby Hairyloon » Wed Apr 29, 2015 11:33 am

I was pondering the problem of multinationals avoiding tax by moving their offices overseas and I wondered if it would be possible to increase the rates at their UK outlets.
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Re: Different rates of rates.

Postby Millbrook2 » Wed Apr 29, 2015 11:55 am

Tax avoidance is perfectly legitimate. As they are multi nationals they can choose where to base themselves.
Indeed we have sought to encourage MLs to move here by reducing corporation tax compared to other countries.

I don't see the problem.
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Re: Different rates of rates.

Postby atticus » Wed Apr 29, 2015 12:00 pm

My understanding is that rates are calculated by reference to the rateable value of the property.
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Re: Different rates of rates.

Postby atticus » Wed Apr 29, 2015 12:03 pm

Some multinationals operate franchise business models. It would be iniquitous to seek to levy taxes on such multinationals by further taxing the owners of franchises, who already pay taxes, rates etc in respect of their businesses.

A well-known coffee chain is one example.
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Re: Different rates of rates.

Postby dls » Wed Apr 29, 2015 3:11 pm

The parties are all promising different ways of recovering such taxes, but most sounds like pious pie in the sky.
Ed Balls may have only ever said one honest thing - that removal of non-dom status will reduce the overall tax take, but, don't worry, he pretended he had said something different as soon as his masters voice demanded it of him.

People have a duty to pay the tax properly demanded of them, but it is difficult to see how it is wrong (let alone legally wrong) to arrange your affairs in such a way as to minimise your tax liability.

It is for Parliament to so state the liabilities as to defeat the workings the tax lawyers. I suspect it will always be ad hoc and piecemeal.

It is an interesting parallel between those arguing that somehow spending money employing people generates wealth. It generally doesn't.
The people who argue for that (anti-austerity) seem unable to quite bring themselves to say that a very rich person spending silly sums on a shopping trip to London does a very similar thing but rather more effectively.

I buy neither.

It merely doesn't cost quite as much as it first seems because most of it is immediately respent. It is not, in either case a virtuous circle.
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Re: Different rates of rates.

Postby Hairyloon » Wed Apr 29, 2015 4:01 pm

dls wrote:It is an interesting parallel between those arguing that somehow spending money employing people generates wealth. It generally doesn't.

There seems to be a general confusion between generating wealth and distributing it. The only way to generate wealth is to grow something, make something, or otherwise add value to something.
Most of those cited as being the generators of wealth (e.g. city traders) actually devalue all the real wealth that they are involved with.
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Re: Different rates of rates.

Postby dls » Wed Apr 29, 2015 9:31 pm

The only way to generate wealth is to grow something, make something, or otherwise add value to something.


Agreed. Tell that to Plaid Cymru, SNP and Labour.

Public sector work has clear value and is necessary and appropriate. That does not mean that it creates wealth. It can do by doing the things you identify, but in general it is parasitic on those growing, making, or adding value.

By the same token, much of the financial services world is parasitic - but not all.
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