Tax Avoidance

HMRC wins £55m avoidance case

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Source: HMRC Press Release 10 March 2018 Read the rest of this entry »

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Guardian to fight legal action over Paradise Papers

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Facebook to overhaul Irish tax scheme

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Source: BBC.co.uk 12 December 2017

“Facebook is to overhaul its tax structure so that it pays tax in the country where profits are earned, instead of using an Irish subsidiary.

The online advertising giant is to make the change in every country outside the US where it has an office.

However, that does not necessarily mean it will start paying more tax in other countries as a result of the overhaul, Professor Prem Sikka of the universities of Sheffield and Essex told the BBC.

Taxes are paid on profits, and “the huge difficulty with large companies is trying to determine exactly what the profit is,” he said.

There are a number of ways firms can muddy the waters, including charging intra-group management fees, royalty fees, and profit-sharing, he said.”

source article here

 

“A wind of change blowing across the Irish Sea?”

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Reproduced from The Tax Justice Network’s “Offshore Wrapper” – Sunday December 10th

A recent editorial in the Irish Times demonstrates an extraordinary shift of opinion in one European tax haven. Ireland has for many years staunchly defended its corporate tax policy as being key to the economic development of the country. Attacks on Ireland’s tax haven status have been interpreted as an attack on Ireland’s right to share in a prosperous global economy.

Telling its readers that the county can no longer afford the damage being done to its reputation by Ireland’s tax haven policy, the article – which would have been unimaginable in a major Irish newspaper even a few years ago – concludes:

“There is a broad consensus that Ireland must defend its 12.5 per cent corporate tax rate. But that rate is defensible only if it is real. The great risk to Ireland is that we are trying to defend the indefensible. It is morally, politically and economically wrong for Ireland to allow vastly wealthy corporations to escape the basic duty of paying tax. If we don’t recognise that now, we will soon find that a key plank of Irish policy has become untenable.”

“ExxonMobil paid no tax on $18 billion revenue, unions allege”

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Source: smh.com.au 3 December 2017

“Exxon is more aggressive in minimising its tax than Chevron, which agreed to a settlement believed to be worth more than $1 billion this year, after being taken to court by the Australian Taxation Office”

“Energy giant ExxonMobil​ has not paid a cent in corporate income tax in Australia in at least two years, despite reaping more than $18 billion from the nation’s natural resources, according to three ofd the company’s workplace unions.

Tax campaigners accuse the company of cashing in on Australia’s soaring gas prices, but avoiding paying tax on its profits by sending much of its money to a network of offshore companies, some based in notorious tax havens.”

Source article here