I see that Amazon are finally going to begin to pay Corporation Tax on UK sales to avoid being caught by the new diverted profits tax, which imposes a punitive 25% tax on groups deemed to be artificially routing profits overseas.
I am not sure he deserves all the credit, although certainly some. He did it in response to the fuss a load of people kicked up, including Margaret Hodge and campaigners like Richard Murphy, while Amazon have been fielding shedloads of abuse from (ex) customers. But that is how democratic politics should work.
As I said in the other thread, now for Google and Facebook. And if Osbourne is serious, the reform and beefing up of HMRC. He cut the resources of the latter in the previous coalition.
I am not sure he deserves all the credit, although certainly some. He did it in response to the fuss a load of people kicked up, including Margaret Hodge and campaigners like Richard Murphy, while Amazon have been fielding shedloads of abuse from (ex) customers. But that is how democratic politics should work.
As I said in the other thread, now for Google and Facebook. And if Osbourne is serious, the reform and beefing up of HMRC. He cut the resources of the latter in the previous coalition.
Let's not forget Starbucks and Nero's and a host of others.
Never understood the cutting of resources at HMRC, that is one area where increased resources in the right areas would increase revenue and be self funding.
All Amazon have to do is now pay their staff the living wage and I might start using them again.
Except with them paying staff more and actually paying tax then goods will become more expensive and people will use the next cheaper option that comes available who have the current amazon morals
I was in Lincoln Waterstones a few weeks ago and saw a new novel I fancied priced up at £20. I said to the store clerk, who happened to be the manager: 'I want that but not at £20' .. we haggled and I knocked him down to £15 and bought it. Next day in Tesco, the same book was priced up at £9, I checked Amazon, £7.99 and postage free if you spent over £20 .. Being very noble, I try to use WH Smith, Waterstones, HMV and the other high street retailers in order to try and keep them going, but, like everyone else, I use Amazon a lot as well. Irrespective of their tax position, the prices are usually right, they employ a lot of people, many in areas of low job prospects and high unemployment, they deliver on time in good condition, and millions of us use the company because it is so convenient
I was in Lincoln Waterstones a few weeks ago and saw a new novel I fancied priced up at £20. I said to the store clerk, who happened to be the manager: 'I want that but not at £20' .. we haggled and I knocked him down to £15 and bought it. Next day in Tesco, the same book was priced up at £9, I checked Amazon, £7.99 and postage free if you spent over £20 .. Being very noble, I try to use WH Smith, Waterstones, HMV and the other high street retailers in order to try and keep them going, but, like everyone else, I use Amazon a lot as well. Irrespective of their tax position, the prices are usually right, they employ a lot of people, many in areas of low job prospects and high unemployment, they deliver on time in good condition, and millions of us use the company because it is so convenient
The prices are cheaper because they are not paying for high street / shopping mall premises, they aren't paying retail staff and up until this announcement they weren't paying UK corporation tax on their profits.
So they were using both online and tax advantages to win market share which in turn enables bulk price negotiations and mass advertising / marketing efforts.
I'm not saying anyone should stop the online revolution but I've been very clear in the past about ensuring fair tax treatment. Incidentally I don't believe this has anything to do with resources at HMRC. Instead it's about OECD countries developing a 21st century approach to transfer pricing so if you and I buy a coffee then only a fair recharge is made for coffee beans and other imports. Similarly if I buy a book online with a tablet / laptop in my house which is written by a European author, printed in Europe and distributed from a warehouse near a UK Port then most of the profit on that transaction should be subject to UK corporation tax.
This is a fundamental part of making the sums add up for our nation and also for having balanced and diversified competition on the high street / online.
Absolutely no problem with foreign multinationals bringing products and services to our market even if it displaces local competion... But not if the locals are handicapped by unfair practices or a distorted tax regime.
It does seem very unfair that a British person who tries to open a local coffee shop has to pay all sorts of taxes on his profits. But an American company can do the same thing and keep all the profits.
I suppose it doesn't matter if you just want to drink nice coffee or get a low paid job. But it's not so good if you want to start a business.
Comments
http://www.theguardian.com/technology/2015/may/23/amazon-to-begin-paying-corporation-tax-on-uk-retail-sales
I'm not a particular fan of George Osborne but well done to him and the Treasury on this one.
I am not sure he deserves all the credit, although certainly some. He did it in response to the fuss a load of people kicked up, including Margaret Hodge and campaigners like Richard Murphy, while Amazon have been fielding shedloads of abuse from (ex) customers. But that is how democratic politics should work.
As I said in the other thread, now for Google and Facebook. And if Osbourne is serious, the reform and beefing up of HMRC. He cut the resources of the latter in the previous coalition.
Never understood the cutting of resources at HMRC, that is one area where increased resources in the right areas would increase revenue and be self funding.
Next day in Tesco, the same book was priced up at £9, I checked Amazon, £7.99 and postage free if you spent over £20 ..
Being very noble, I try to use WH Smith, Waterstones, HMV and the other high street retailers in order to try and keep them going, but, like everyone else, I use Amazon a lot as well. Irrespective of their tax position, the prices are usually right, they employ a lot of people, many in areas of low job prospects and high unemployment, they deliver on time in good condition, and millions of us use the company because it is so convenient
So they were using both online and tax advantages to win market share which in turn enables bulk price negotiations and mass advertising / marketing efforts.
I'm not saying anyone should stop the online revolution but I've been very clear in the past about ensuring fair tax treatment. Incidentally I don't believe this has anything to do with resources at HMRC. Instead it's about OECD countries developing a 21st century approach to transfer pricing so if you and I buy a coffee then only a fair recharge is made for coffee beans and other imports. Similarly if I buy a book online with a tablet / laptop in my house which is written by a European author, printed in Europe and distributed from a warehouse near a UK Port then most of the profit on that transaction should be subject to UK corporation tax.
This is a fundamental part of making the sums add up for our nation and also for having balanced and diversified competition on the high street / online.
Absolutely no problem with foreign multinationals bringing products and services to our market even if it displaces local competion... But not if the locals are handicapped by unfair practices or a distorted tax regime.
I suppose it doesn't matter if you just want to drink nice coffee or get a low paid job. But it's not so good if you want to start a business.