Tag Archives: tax avoidance

Daily Headline – 20/02/13

Bitter coffee; 1701 applicants for 8 jobs

Coffee cups Caffe Nero Costa StarbucksThe state of things in the UK seem to be going from bad to worse. Costa Coffee (a British coffee chain) is opening up another branch which has created 8 jobs (3 full-time and 5 par-time) and so far they have received over 1700 applications.

Costa said they were shocked at the high number of applicants, it’s unclear why they are shocked, don’t they read the news? Or maybe from the bubble of the elite they are blissfully unaware of the plight of the working class… or maybe they just don’t care.

The applicants are said to include people vastly over qualified for the job such as former retail managers with years of experience and university graduates.

Sales at Costa have risen 7.1% since a boycott of US coffee chain Starbucks took place for not paying any corporation tax in the UK since 2009 and the UK’s Caffè Nero who didn’t pay any tax last year despite profits of almost £40m.

For a better tasting coffee, try an independent café.

Daily Headline – 19/02/13

UK wealthy find £5bn a year tax loophole

British HMRC flagThe UK tax-man (HMRC) is missing out on £5bn a year because the wealthy are paying tax expert companies to help them avoid paying the correct amount.

The Guardian reports:

Margaret Hodge, a former Labour minister, said rich businessmen designing the schemes were “running rings” around HMRC.

She said HMRC had an “appallingly bad record” at catching tax cheats, having fined just 11 people for promoting tax avoidance since 2004 – despite 10,000 people a year coming forward to report tax avoidance schemes.

What is £5bn to the UK?

In 2012 government spending on education went down by £2bn from £58.28bn to £56.27bn so £5bn could help avoid many of the cuts and economic difficulties the UK is currently experiencing.

Daily Headline – 16/02/13

G20 and Global Tax?

Global tax g20russiaMultinational companies buy, sell and ship money all round the world to either avoid paying tax altogether or to pay the very least they can.

The problem is, this is not illegal, loop holes exist and some countries deliberately keep corporate tax as low as possible to attract businesses and jobs.

If a global, unified tax system was in place it could (if done properly) eliminate the constant ‘threat’ of businesses and jobs packing up and moving to another country.
The money raised would be a much needed boost to help combat unemployment and improve heath and education.

The G20 Finance Ministers and Central Bank Governors’ Meeting will take place in Moscow, Russia from 15th – 16th February 2013.
Amongst other things the ‘global economy outlook’ will be discussed with the UK, France and Germany expected to push for global tax rules to help clampdown on corporate tax avoidance.

A full list of the G20 Finance Ministers and Central Bank Governors’ Meeting program can be found here.

There are almost countless examples of corporate tax avoidance, here are a couple…

Starbucks has paid £8.6m in corporation tax in its 14 years of trading in the UK, and nothing in the last three years.

Facebook paid no corporate income tax in the US last year, and instead reclaimed $451m in taxes from the Internal Revenue Service (IRS), despite recording profits of over $1bn.

Amazon generated £7.5bn from sales in the UK in the last three years, did so without attracting any corporation tax on the profits from those sales.

Daily Headline – 10/02/13

Poverty stricken Zambia used by British multinational

Zambian ABF poverty flagAnother example of globalisation and how multinational corporations go round the world to find a victim waiting to be taken advantage of.

An investigation has found that Associated British Foods the FTSE 100 British multinational is avoiding paying the African state of Zambia millions of pounds in tax. During the period of 2007-12 they contributed almost nothing and in two of those they paid literally nothing.

The investigation also found that the company ships off around a third of pre-tax profits to tax havens.

The Guardian reports:

“It is estimated that the tax haven transactions of this one British headquartered multinational deprived Zambia of a sum 14 times larger than the UK aid provided to the country to combat hunger and food insecurity.”

For further details about the investigation click: Action Aid; Tax Justice.