Crackdown on Tax Avoidance

[Kendhni]

"G20 finance ministers meeting in Moscow have pledged to crack down on tax avoidance by multinational companies."
Read story here

This has got to be good news and can only work with all countries on side. Hopefully this will see a better distribution of how taxation is determined. They also need to close the various contribution/dividend/loan schemes that are out there. It isn't fair when tax revenue earned in one country is passed on through creative accounting to a separate country for tax reasons .. but without global agreements it will never succeed.

It is also good to see the UK leading the way in this (albeit out of self interest).

... and I will have to become more creative

[oldbluefox]

All I can say is 'Well done, Mr Cameron'. It seems a pity that this wasn't done sooner as it has been known to be happening for a long time. Had this been sorted out a lot earlier maybe we wouldn't have the same problems we have now. It's a positive move.

[Greenie Mike]

and let's hope he starts with Wightlink, the ferry to/from the Isle of Wight.

As I understand it, repaying a massive loan at a high interest rate to 'itself', an Australian company, so as to A) avoid tax in this country and B) to enable it to be able to make very very VERY high ferry fares for which we can do nothing, except use the other ferry, Red Funnel (which I do now), but their fares are just as high because they work 'hand in hand' over price fixing with Wightlink.

But it will be OK when we get the bridge

[JohnTheDog]

I often wonder if this is why some insist on settling the cruise account with cash....

[Manoverboard]

There are two sides to this ... some companies opt to pay the lions share of tax to the UK cofers yet have Branches / Offices in other Euro Countries which means that revenue will also be lost.

It is NOT all win / win.

[Kendhni]

That is true MOB, but given the UK's corporation tax is at the higher end of the European scale we will hopefully see a net gain.