A House of Commons Committee of MPs has criticised the settlements that HMRC, the UK Tax authority, has reached with some companies, as cosy. They have also asserted that they believe there are more than £25 billion of outstanding tax issues with companies.
So, let's look at that. HMRC reached agreements with Goldman Sachs and with Vodaphone that settled long running disputes on their complex tax affairs. That is, supposed experts reviewed the evidence and submissions and then decided that the best deal for the tax payer was the one that was on the table. This presumably was less than they might have got for us if they had gone to court (and lined the pockets of lawyers) but more than the cost of incurring additional expense.
Of course, this then frees-up those investigators to examine the affairs of other companies and so perhaps overall get more money flowing in?
As for the £25 billion of outstanding tax issues with companies.
This is a typical ploy. Think of a number, make it bigger and add the word billion after it. Why doesn't, the still biased, BBC and other media, ask these MPs from where this number comes? Which companies are evading this amount of taxes (that is clearly the implication)?
Could it simply be that this is the amount of tax that is in dispute between HMRC and companies? If yes, then what would we expect - nothing to be in dispute? Nothing outstanding?
Here is a quick question - How many of the MPs on this committee do you think actually have real world business experience?
And another one. How many of them understand that it is common that a company's tax issues can stretch out for a number of years before they are resolved?
And yet one more - doesn't under paid tax accrue an interest charge?
And a final question - do you think that the committee was miffed because the HMRC head, stated that he would not discuss or disclose details to the committee on the grounds of the long held position of confidentiality of tax affairs.
So, let's look at that. HMRC reached agreements with Goldman Sachs and with Vodaphone that settled long running disputes on their complex tax affairs. That is, supposed experts reviewed the evidence and submissions and then decided that the best deal for the tax payer was the one that was on the table. This presumably was less than they might have got for us if they had gone to court (and lined the pockets of lawyers) but more than the cost of incurring additional expense.
Of course, this then frees-up those investigators to examine the affairs of other companies and so perhaps overall get more money flowing in?
As for the £25 billion of outstanding tax issues with companies.
This is a typical ploy. Think of a number, make it bigger and add the word billion after it. Why doesn't, the still biased, BBC and other media, ask these MPs from where this number comes? Which companies are evading this amount of taxes (that is clearly the implication)?
Could it simply be that this is the amount of tax that is in dispute between HMRC and companies? If yes, then what would we expect - nothing to be in dispute? Nothing outstanding?
Here is a quick question - How many of the MPs on this committee do you think actually have real world business experience?
And another one. How many of them understand that it is common that a company's tax issues can stretch out for a number of years before they are resolved?
And yet one more - doesn't under paid tax accrue an interest charge?
And a final question - do you think that the committee was miffed because the HMRC head, stated that he would not discuss or disclose details to the committee on the grounds of the long held position of confidentiality of tax affairs.
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