NOW the taxation of large companies has reared its head once more, surely if we live in a capitalist society then the profit margins of those companies should be totally irrelevant to governmental taxation laws?
Why not simplify the system by introducing a ten per cent tax on turnover and leave the companies with their fiscal responsibility to their shareholders?
To quote one example Google’s UK activities had a turnover of £395,000,000 and paid taxes of £6,000,000. A ten per cent tax would have given the UK Exchequer £39,500,000 – a not insignificant difference and possibly nearer to what should have been paid, had there been no financial shenanigans.
It was also noteworthy that the Eric Schmidt, the executive chairman, is said to have collected about $30,000,000 in financial awards, despite only having a salary of about $1,500.
Presumably Starbucks et al, would also be in the same league as would companies currently running the notorious PFI “initiatives” and power generators.
Surely turnover is the one thing which cannot be adjusted by any current tax rules and/or, sleight of hand?
To use current terminology, it would appear the Inland Revenue and its rules are not fit for purpose, and with the deals alleged to be done with international companies, neither are their Inspectors.
BARRY BURTON, Fareham.
