General Chat

Thanks Rollo:))

The main reason why corporation tax exists is to allow governments to meddle with "free markets" by distorting tax costs according the government policy and whims.

e.g. In the case of the energy companies the govt is looking at a yawning gap in both energy supply and the transmission grid which Labour signally failed to do anything about. Thus the govt is happy to cut the energy companies a long length of slack. The other end of the rope is of course the sharp increase in prices which is unlikely to level off. Suppose nPower et al were squeezed much harder for corporation tax ? They would heavily cut investment. The inevitable result would be power shortages. There are plenty of examples.

The chances of serious economic growth in the future without massive investment in real power ( as opposed to windmills) are nil.

A far more effective method of collecting tax from companies is turnover tax which is far harder to evade and cannot be set against external costs etc. A turnover tax can of course be tapered. With a turnover tax corporation tax on profits would not exist. If such a system were to be widely implemented it would be very bad news for Luxembourg, BVI and so on ...

38 is wasting its time and effort on trying to get anything done about nPower and its ilk as the rules are part of an international agreement. The chances of getting a revised agreement are low to zero. It is not illegal to so arrange a company's or individual's affairs so as to minimise tax whatever the Inland Revenue may wish.

I had an email from someone to do with NPower today - deleted it as I don't have NPower

NPower this time, trying to evade tax payments....



https://secure.38degrees.org.uk/page/s/npower-pay-your-taxes?redirect_url=https%3A%2F%2Fsecure.38degrees.org.uk%2Fnpower-tax-thanks#petition

jude:))