POV-Ray : Newsgroups : povray.off-topic : I wonder who I'm talking about ... : Re: I wonder who I'm talking about ... Server Time
6 Oct 2024 06:01:42 EDT (-0400)
  Re: I wonder who I'm talking about ...  
From: Le Forgeron
Date: 17 Feb 2015 08:12:56
Message: <54e33e58@news.povray.org>
Le 17/02/2015 12:57, scott a écrit :
>>> And don't forget in your example above the UK government will get far
>>> more in VAT than the Dutch government will get in tax,
>>
>> Sorry, could you explain the significance of that?
>
> That the UK government don't get "nothing" from Starbucks because they
> transferred all their profit abroad.
>
To state the obvious: the UK is taking the VAT, but does not take the 
tax on the profit of the UK-corporation, as profit evaporates via 
administrative (aka non-corporal, you cannot prove it did not 
happened... no traces, but it's "legal") costs.

So instead of 20% of VAT (on full price of sell, let's say £20 out of 
£100 you paid over the year for your coffee) and 28% on 
big-company-profit** ( based on the remaining £80, minus the price of 
water, the wages, the rent of every location, the paid energy, ... and 
so on, from the £70m from £414m, remains something like £16 to be taxed, 
about £5).

Now, with a bit of creativity, these £5 goes to some paradise and the 
budget of UK takes what is missing from the tax-payers pocket.

**: smaller companies have a lower rate, in theory. But the evasion-game 
is played so much by big companies that in fact the small companies are 
more taxed.


-- 
Just because nobody complains does not mean all parachutes are perfect.


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