Opinion: Google could face multi-million pound bill after paying just £11.6 million in tax in 2012 | Mail Online – John Gelmini

HM Revenue & Customs

HM Revenue & Customs (Photo credit: jam_90s)

The words “could face” give the game away.

Google will face next to nothing and even if they are made to pay something more to HMRC all they will do is get rid of some people and the taxpayer will end up paying their dole and will save nothing.

Dr Alf’s solution of giving HMRC more clout and resources will not work either because the multinationals employ the best lawyers and accountants and can run rings round HMRC or any of our Civil Servants who are not streetwise enough and far too predictable.

They are capable of going after “little people” like Avon ladies, taxi drivers, fish and chip shop owners and micro businesses which trade on the internet through UK registered websites.

When it comes to major multinationals like Amazon, Microsoft, Google, Vodaphone, Arcadia Group PLC, Virgin PLC, Arcelor Mittal, Eon, Glaxo SmithKline and others HMRC is a toothless paper tiger.

The solution is to have lower and flatter rates of corporation and personal tax which eliminate the need for tax evasion and encourage money held offshore to be brought back onshore.

Singapore manages this with stringent compliance and tax rates higher than those prevailing in the Dublin Financial District where Google bases its European operations and is poised by 2016 to be the 2nd global financial center whilst the City of London is relegated to 4th position.

The problem is tax rates which are too high in the UK, too much Government waste, an unaffordable public sector, far too many civil servants, too many lazy and unproductive people and malfeasance arising from the plundering of the public purse which has been going on for years.

John Gelmini

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Some thoughts on the Britain’s Economy via The Economist – john Gelmini

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190px 190px (Photo credit: Wikipedia)

I thank Dr Alf for reblogging the Economost article entitled: “Britain’s economy: How is it really doing?” and asking the following open questions:

  1. Do you agree that commercial departments of banks are full of bureaucrats, with no knowledge of their customers nor their businesses and very little authority to back their judgement?

  2. How do you suggest that the BoE and the Chancellor stimulate growth in UK businesses, especially small and medium-sized businesses?

    Here are my responses:

The answer to Dr Alf’s first question must be a resounding yes.

The old Captain Mainwaring (Based on the Dad’s Army television character), style bankers who knew their personal and business customers intimately have all gone to the corporate graveyard, having effectively been made redundant more than 30 years ago.

In the days when it was possible for a small business owner to talk about “floorboard money” or use a crowbar like gesture to signal that there were more assets than the accounts showed, the old style bank managers were masters of realpolitik and could exercise seasoned judgement.

Now, with points system scoring and HMRC cracking down on little people whilst leaving people like Vodaphone, Eon, Arcadia Group PLC, Glaxo Smith Kline, BT PLC, Guardian Media Group PLC, Tesco PLC alone, we have a situation in which SMEs are denied credit and put through the HMRC “olive press” for even minor indiscretions.

Dr Alf’s prescription, plus more export led growth, infrastructure bonds, more enterprise and the active encouragement of wealthy foreign investors is the way forward coupled with a cessation of all overseas aid including the £1 billion gbp we have given to Nigeria to help them put a man into space and the £1 billion gbp a year we give to India, which they say they do not need.

Fracking, a concerted blitz on the costs of local and central government, building roads and nuclear power stations, and a switch from warmongering to airport capacity building and encouraging foreign banks to compete with our moribund High Street Clearers would also help.

The Economist is right to take the Coalition to task for allowing commercial lending to be strangled whilst pouring money into the UK housing market to make consumers feel good just before the election.

John Gelmini

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