Paradise Papers Leak

[Ricster]

You have taken nationality then?

Nope. Currently being sponsored for a 2nd time after my old employer liquidated gis company to avoid a $80k tax bill. That employer still owes me a total of $109k that i will never see too.
He reopened his company under another name and coninues to live the lifestyle at the expense of the ATO.
SWP knows nothing of me, knows nothing about my situation and builds his picture of me by what is said on here.
He also doesnt know ive suffered depression over those circumstances but continually harrasses people in threads.
Anyway enough about my negative life and back to the Tax avoiders

 

[sir baconface]

Yes they do, but they pay little or no corporation tax. They use various methods. For example, Starbucks buy all their coffee from subidiary based in Holland, which has an arrangement with the Dutch government. This "cost" reduces their UK corporation tax liability. Similarly, Amazon claim that all their UK sales are fulfilled by an Irish company, which also has an arrangement. Ikea pay for intellectual property to their subsidiary in Monaco, tax rate 5%. They transferred all rights in their products to their own subsidiary, the royalties again reduce their UK corporation tax.
While these companies pay unavoidable taxes in the UK such as national insurance, they avoid corporation tax on their profits. Note that PAYE is paid by the employee not the company. Amazon tried your argument in the select committee hearings and got short shrift. It is indefensible, whatever sophistry you try to use.

I know that. I was picking up on your phrase "avoiding tax" to check if you understood it was Corporation Tax rather than taxes in general. Clearly you do.

The corporations are the ones applying sophistry, not me. But while these practices are legal, I understand why they do it, even if I don't like it.

You picked me up on PAYE. Yes, it's payable by the employees but out of income paid by the corporation.

So for clarity, bottom line is they contribute directly or indirectly income tax, employee and employer NIC, pension contributions, VAT and business rates. But they avoid Corporation Tax.

 

[SWP's back]

Nope. Currently being sponsored for a 2nd time after my old employer liquidated gis company to avoid a $80k tax bill. That employer still owes me a total of $109k that i will never see too.
He reopened his company under another name and coninues to live the lifestyle at the expense of the ATO.
SWP knows nothing of me, knows nothing about my situation and builds his picture of me by what is said on here.
He also doesnt know ive suffered depression over those circumstances but continually harrasses people in threads.
Anyway enough about my negative life and back to the Tax avoiders

So you’re resident in Australia then as I said.

You live somewhere for six years, you work there, you get paid there, you pay tax there then you’re a resident there. It’s really quite straightforward and anything else is completely superfluous to the discussion.

But chill, I’m sure lots of people get confused between residency and citizenship like you did a few pages back. It’s no biggie.

https://www.gov.uk/government/uploa...ce_reform_of_ordinary_residence_responses.pdf

Little definition for you there.

 

[Ricster]

Just so you know, Ric hasn’t said a thing to me about you ever so I’m not sure where you get your ‘again’. The only thing I’ve seen happen is you have weird threads removed.

Do you have anything to say on topic at all?

You took it off topic by pretending that you know me and you know fuck all about me. Do me one favour and leave me the fuck alone!

 

[SWP's back]

You took it off topic by pretending that you know me and you know fuck all about me. Do me one favour and leave me the fuck alone!

No. You corrected me by stating you’ve lived in australia for six years but aren’t resident there.

It spiralled from there.

Posted above but you may have missed it, handy residency definition from the government:

https://www.gov.uk/government/uploa...ce_reform_of_ordinary_residence_responses.pdf

If you’re too flouncey right now to read my posts then hit the old ignore button, it won’t upset me and the option is open to you.

NB: residency is really a subject that’s part of the topic as individuals are taxed on their residency rather than domicile for the majority of taxes and often get confused between the two with painful results when the taxman comes calling.

 

[sir baconface]

Lads, it's not worth it. :)

 

[blue cigar]

Prince charles in the news after lobbying to change agreements that benefits a company which happened to assist with his offshore affairs. Sure he knew nothing about that though...probably works extra hard so its all sweet.
Loving these leaks

 

[The blue phantom]

Yes they do, but they pay little or no corporation tax. They use various methods. For example, Starbucks buy all their coffee from subidiary based in Holland, which has an arrangement with the Dutch government. This "cost" reduces their UK corporation tax liability. Similarly, Amazon claim that all their UK sales are fulfilled by an Irish company, which also has an arrangement. Ikea pay for intellectual property to their subsidiary in Monaco, tax rate 5%. They transferred all rights in their products to their own subsidiary, the royalties again reduce their UK corporation tax.
While these companies pay unavoidable taxes in the UK such as national insurance, they avoid corporation tax on their profits. Note that PAYE is paid by the employee not the company. Amazon tried your argument in the select committee hearings and got short shrift. It is indefensible, whatever sophistry you try to use.

Ouch. Great post.

 

[smudgedj]

Nope. Currently being sponsored for a 2nd time after my old employer liquidated gis company to avoid a $80k tax bill. That employer still owes me a total of $109k that i will never see too.
He reopened his company under another name and coninues to live the lifestyle at the expense of the ATO.
SWP knows nothing of me, knows nothing about my situation and builds his picture of me by what is said on here.
He also doesnt know ive suffered depression over those circumstances but continually harrasses people in threads.
Anyway enough about my negative life and back to the Tax avoiders

Sponsored? is it by the mile?

Sound a little complicated that visa routine.

 

[KS55]

I know that. I was picking up on your phrase "avoiding tax" to check if you understood it was Corporation Tax rather than taxes in general. Clearly you do.

The corporations are the ones applying sophistry, not me. But while these practices are legal, I understand why they do it, even if I don't like it.

You picked me up on PAYE. Yes, it's payable by the employees but out of income paid by the corporation.

So for clarity, bottom line is they contribute directly or indirectly income tax, employee and employer NIC, pension contributions, VAT and business rates. But they avoid Corporation Tax.

No they dont contribute income tax, they deduct it from your salary and pass it on. Thats not a "contribution" its an administrative function.
To expand slightly, companies employ large numbers of accountants and tax lawyers at great expense who are experts in tax arbitrage. Laws differ from country to country and companies take advantage of those differences, which is why it is so difficult to combat. Also, countries have special tax arrangements in order to attract companies. In the EU, Luxemborg, Ireland and Holland do this. And, of course, British crown dependencies are past masters at it: Cayman Islands, Channel Islands etc. Without international agreement, it is impossible to stop. When we leave the EU, we can combat it by taxing sales directly, which is currently outlawed under EU regulations, but I doubt we will.(note vat is not techically a tax on sales).