Question About Corporation Tax Rumour

Maria gurgled happily, sounding much like they were saying:

Did you follow the link at the bottom of the article to the "fully referenced version" on Monbiot's site?

I remember the "reductions" which took corporation tax from 10% above ten grand to 19% on everything...

Yes, just got there (the link). I'm a numpty about this things, but I'm doing my best. :)

He's made a mess of it.

He says the UK will have the lowest rate of corporation tax in the developed west by 2014, then complains that companies based here will have an incentive to shift "business" (whatever that means for tax purposes) "into nations with lower corporate tax rates".

Ergo they'll have an incentive to repatriate business to the UK.

"The new rules also threaten to degrade the tax base everywhere, as companies with headquarters in other countries will demand similar measures from their own governments."

How dare they demand lower taxes on production, leading to cheaper goods and services for the consumer.

"DVH" gurgled happily, sounding much like they were saying:

Only if you ignore that little caveat...

Ireland's corporation tax rate is currently 12.5%. Ireland clearly doesn't count as "developed west".

Is a call centre a profit centre or a cost centre?

I'm not yet convinced this is worth a hoo-hah.

i.e. if you offshore your call centre, where is the taxable transaction done? I'm dubious it's done offshore.

I want more detail...

There are people posting on the Telegraph site that what it actually means is that foreign corporations will be able to have branches here and not have to pay any tax here at all. People seem to believe it - they seem to believe anything anyone says as long as it has 'Tory ****' in there somewhere.

I read a bit of the treasury document (really short of time at the mo), and what he actually wants to do is follow on from Labour, who did the same thing with foreign-earned dividends by making them exempt from CT in the UK. What I don't get is why the 'Tory' press is not reporting it - or perhaps they are and I just haven't seen it. Surely an end to double taxation is a good thing. It's in here anyway

If you mention Ireland, people just laugh because they think the low CT is what busted Ireland.

Here is the outline of options if you are interested

re

Or you could try the Economic and Monetary Union. The low interest rates on the euro caused an unsustainable construction boom, and when it came to an end, construction companies went bankrupt, people became unemployed, many were not able to pay their mortgage nor sell their property and thus banks suffered massive losses and had to be bailed out.

More likely same (or higher) prices and greater profits......

>>

>>>

That doesn't sound likely, though I suppose it's possible.

I haven't got round to this yet. I'm hoping somebody else will condense it for me!

>

Foxes telling the farmer how to build his henhouse.