Apple, Google, Accenture, Amazon – it’s time to stop the Corporation Tax avoidance farce

As the Government puts up our taxes and cuts public services, one group is laughing all the way to their offshore banks. These are large international companies that pay pathetically little to no tax in the UK because our corrupt politicians let them get away with blatant tax avoidance schemes.

The consultancy Accenture earns about £2bn in the UK (much of this from British taxpayers), but only pays £3m in tax. Apple – UK earnings £6bn, tax just £10m. Google – UK earnings £2.6bn, tax £6m. Amazon – UK earnings £7bn, tax £0. Several of our water, power and rail companies are supposedly based in Jersey and the Cayman Islands. Result – little to no tax. Many large multinationals play similar games to avoid tax. But because many politicians and peers are highly-paid “consultants” to these companies, no action is ever taken against them.

Any tax only has a limited shelf-life. At first it raises money, but people and organisations soon find ways of avoiding it. In the past we’ve had hat taxes, beard taxes, window taxes, wig taxes and many others.  When companies were based in one country, Corporation Tax was an effective way of raising revenue. But with international companies using tax havens, Corporation Tax has become increasingly ineffective. Our corrupt politicians know this, but  as many of them are on the payroll of tax avoiding companies, nothing is done.

Here is a link to an article I wrote for MoneyWeek explaining why Corporation Tax should be abolished and replaced by a tax on all a company’s activities in the UK whether they claim to be based in Jersey, the Cayman Islands or on the Moon. http://www.moneyweek.com/news-and-charts/economics/uk/david-craig-scrap-the-modern-day-beard-tax-57636

It’s time for our corrupt politicians to stop the Corporation Tax avoidance farce.