Govt loses bedroom tax case

[Santa]

Google will probably have a crafty system where all the trademarks and intellectual property are registered in a tax haven and the UK entity is licensed to use them for a fee, so the profit they make in the UK isn't that much once they pay the parent company and all the money will be moved via a series of intercompany invoices to somewhere that offers a low rate of corporation tax, and then on to somewhere like the Cayman Islands.

 

I used to work for a company that moved its European HQ to Dublin for exactly that reason.

[JOHNNYAITCH]

Google will probably have a crafty system where all the trademarks and intellectual property are registered in a tax haven and the UK entity is licensed to use them for a fee, so the profit they make in the UK isn't that much once they pay the parent company and all the money will be moved via a series of intercompany invoices to somewhere that offers a low rate of corporation tax, and then on to somewhere like the Cayman Islands.

 

I used to work for a company that moved its European HQ to Dublin for exactly that reason.

 

Pretty much spot on from what I can understand

[JOHNNYAITCH]

It will not happen very soon, if ever, but what is required is a common corporate tax system for the world, and the elimination of tax havens.

 

Totally agree..but why would any tax haven give up its status when its good for them and their people?

[JOHNNYAITCH]

Change "Punishing Poor people" to "Dominating Poor people". And they do this by ensuring wages stay low, Social housing is eradicated and the Markets are kept at a level where people can just about afford to rent out private accommodation. Therefore the many rich percent of landlords continue to take the cream of the countries property finances whilst those at the bottom stay in rented property and watch what very lttle monies that they do have Dissapear into a huge corporate black hole

 

True in many ways but suggests that all those at the bottom cannot get away from the bottom or don't have the wherwithall to get away from the bottom..I believe that many ( not all) can and I give them more credit to be able to do so. Help has to be there for those that cannot

[Fosse69]

Totally agree..but why would any tax haven give up its status when its good for them and their people?

Of course not, but it is not in their hands. It is a form of legal tax evasion, the only way is to change the tax rules etc through the TT agreements with the Pacific and Europe. Easy words, there are vested interests who avoid taxes, who would be framing the rules, so I am not holding my breath.

[JOHNNYAITCH]

Of course not, but it is not in their hands. It is a form of legal tax evasion, the only way is to change the tax rules etc through the TT agreements with the Pacific and Europe. Easy words, there are vested interests who avoid taxes, who would be framing the rules, so I am not holding my breath.

 

Exactly..why should Bermuda (for example) want to change its tax rules to make itself and its people worse off to help us get more taxes. Europe, the US etc would have to find some way to make them worse off if they don't change their tax rules or better off if they do..maybe some sort of trade embargo/tariffs or something around money transfers..but that would go against many of the principles we believe in and be us bullying the little guy (Bermuda in this case). Not sure what we can offer them to make them better of if they do change their rules

[Guppy 4 England]

The problem with all taxes is they are usually unfair on someone. However, the issue still remains that some scrotes live in 2-3 bedroom social housing on their own. Yet people with 3-4 kids are in two beds or less.

 

Also who is to say that some of them are not renting out the rooms they arent using ???

[JOHNNYAITCH]

The problem with all taxes is they are usually unfair on someone. However, the issue still remains that some scrotes live in 2-3 bedroom social housing on their own. Yet people with 3-4 kids are in two beds or less.

 

Also who is to say that some of them are not renting out the rooms they arent using ???

 

The 'under occupancy' needs addressing (whether scrotes or not) but this is not the way

 

I am sure a few, maybe a lot, take in lodgers..but that's a separate issue

[Warren]

The problem with all taxes is they are usually unfair on someone. However, the issue still remains that some scrotes live in 2-3 bedroom social housing on their own. Yet people with 3-4 kids are in two beds or less.

 

Also who is to say that some of them are not renting out the rooms they arent using ???

 

There is a good point in the these comments but there are a few dynamics. As a private householder aged 57 my wife and I live in a 4 bedroom house. Our kids are now 26 and 29, so it is only fully occupied when they visit. But we have spent a lot of money on the house including in the last 6 months about £30,000 on refurbishment. So we are under occupying, but also feel committed to our house and our spending has had economic benefit.

 

Meanwhile our daughter, who is a professional in the NHS living in Surrey, aged 26, has no chance of buying a house there and even little chance of renting a house unless she finds a stable partner. She rents a room in a house with 3 other people. Even though we are reasonably wealthy we can't bridge a gap of that magnitude to assist in the housing market, unless she moves north again.

 

In social housing where the state is paying part of the bill I think some pressure to resolve under occupancy is justified. In the private sector the same could be said, if the state is paying the bill. But many people like us will not move - yet, because of attachment and investment. But looming in the background as you get older is the big question - can we cope? If we can't cope with living in the house we are in now we will then need to move.

 

And so to the EU. If we struggle to build 200,000 homes per annum and 300,000 migrants are arriving ........

[For Us All]

There is a good point in the these comments but there are a few dynamics. As a private householder aged 57 my wife and I live in a 4 bedroom house. Our kids are now 26 and 29, so it is only fully occupied when they visit. But we have spent a lot of money on the house including in the last 6 months about £30,000 on refurbishment. So we are under occupying, but also feel committed to our house and our spending has had economic benefit.

 

Meanwhile our daughter, who is a professional in the NHS living in Surrey, aged 26, has no chance of buying a house there and even little chance of renting a house unless she finds a stable partner. She rents a room in a house with 3 other people. Even though we are reasonably wealthy we can't bridge a gap of that magnitude to assist in the housing market, unless she moves north again.

 

In social housing where the state is paying part of the bill I think some pressure to resolve under occupancy is justified. In the private sector the same could be said, if the state is paying the bill. But many people like us will not move - yet, because of attachment and investment. But looming in the background as you get older is the big question - can we cope? If we can't cope with living in the house we are in now we will then need to move.

 

And so to the EU. If we struggle to build 200,000 homes per annum and 300,000 migrants are arriving ........

 

Have you ever thought of downsizing?We were in a similar position when the kids left home and went for a smaller property which we have also refurbished.

[Fosse69]

Exactly..why should Bermuda (for example) want to change its tax rules to make itself and its people worse off to help us get more taxes. Europe, the US etc would have to find some way to make them worse off if they don't change their tax rules or better off if they do..maybe some sort of trade embargo/tariffs or something around money transfers..but that would go against many of the principles we believe in and be us bullying the little guy (Bermuda in this case). Not sure what we can offer them to make them better of if they do change their rules

Seems like the EU is to have a go to make corporate taxes uniform on the grounds that otherwise it is state aid to businesses and thus unfair competition, but I will not hold my breath until my taxes are reduced with the increased tax income to No11. Bermuda would be no different than any other country where a foreign power/company closes a steel works etc.