Where debating everything under the sun is only the beginning

Once HMRC (the Tax Office) has assessed the structures, and decided how much profit has been artificially diverted from the UK, multinationals will have only 30 days to object to the 25% tax.

The UK is not unique from loosing out to business which make money from trading in the country but maintain inventive corporate tax structures to pretend that they have no or little revenue and divert their profits off shore or to a low tax country.

Apple Operations International has not filed a tax return in Ireland, the United States or any other country over the last five years. It had income of $30 billion between 2009 and 2012. By shuttling revenue between international subsidiaries, Apple was able largely to sidestep paying taxes, Congressional investigators said.

In the prepared testimony, Apple executives disputed the characterization of Apple Operations International. “A.O.I. performs important business functions that facilitate and enhance Apple’s success in international markets,” the testimony states. “It is not a shell company.”

The Senate investigators also found evidence that the company turned over substantially less money to the government than its public filings indicated.

While the company cited an effective rate of 24 to 32 percent in its disclosures, its effective tax rate was 20.1 percent, based on the committee’s findings. And for a company of Apple’s size, the resulting difference was substantial — more than $8 billion in 2009, 2010 and 2011.

The UK action is not limited to companies by the way. They are after individuals as well, those who have off shore accounts and those who "country-hop", staying in a country for less than 3 months at a time in order not to join the local tax club.

The number of billionaires living in the UK has risen to more than 100 for the first time, according to the 2014 Sunday Times Rich List.

There are now 104 billionaires based in the UK with a combined wealth of more than £301bn, the list says.

That means the UK has more billionaires per head of population than any other country.

Shortly after the United Kingdom’s latest big tax hike, Great Britain’s millionaires started voting with their feet. And the result hasn’t been pretty for the British treasury.

Raising the country’s top income tax rate to 50 percent has cost the UK 7 billion pounds — about $11.2 billion — since 2010, according to London’s Daily Telegraph newspaper, as wealthy taxpayers have intentionally worked less, deferred income to future years, moved their earnings overseas or left the country entirely.

over here the 1% cover at least 25% of our tax bill

News from abroad.

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The number of billionaires living in the UK has risen to more than 100 for the first time, according to the 2014 Sunday Times Rich List.

There are now 104 billionaires based in the UK with a combined wealth of more than £301bn, the list says.

That means the UK has more billionaires per head of population than any other country.

Quote

Shortly after the United Kingdom’s latest big tax hike, Great Britain’s millionaires started voting with their feet. And the result hasn’t been pretty for the British treasury.

Raising the country’s top income tax rate to 50 percent has cost the UK 7 billion pounds — about $11.2 billion — since 2010, according to London’s Daily Telegraph newspaper, as wealthy taxpayers have intentionally worked less, deferred income to future years, moved their earnings overseas or left the country entirely.

You can't trust millionaires no matter where they live.

Vlad is a millionaire and we trust him.

Under the new tax regime, companies with an annual turnover of £10m will have to tell HM Revenue & Customs (HMRC) if they think their company structure could make them liable for diverted profit tax.

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Once HMRC (the Tax Office) has assessed the structures, and decided how much profit has been artificially diverted from the UK, multinationals will have only 30 days to object to the 25% tax.

The rate of 25% is above the new rate of proposed Corporation Tax of 20%.