My stance on tax is they pay whatever tax is required of them other wise they would be prosecuted by now.Agreed.
I don't use Starbucks any more and hadn't for a good couple of years before the whole non-tax payment debacle.
Ok, here's how it works: Company A does £100 million worth of business in the UK, on which they would make £50 million worth of profits if they bought their widgets on the open market, at a regular price of £1. Except they don't. They buy their widgets for £5, from Company B, which means they end up making only £1million profit, which is what they pay tax on.My stance on tax is they pay whatever tax is required of them other wise they would be prosecuted by now.
Ebay is not an auction site, it cannot be an auction site in the UK due to our binding laws on auctions, it is a marketplace.How does Ebay get away with it? Do they hold patents on the online auction process? Or are they like Google, in that they are now so large and dominant it makes it difficult for small upstart online auctions?
Ok, here's how it works: Company A does £100 million worth of business in the UK, on which they would make £50 million worth of profits if they bought their widgets on the open market, at a regular price of £1. Except they don't. They buy their widgets for £5, from Company B, which means they end up making only £1million profit, which is what they pay tax on.
Company B, of course, is making shedloads of profits, selling all these massively overpriced widgets, but Company B has taken the precaution of locating itself in (to all intents and purposes zero tax) Lichtenstein. Company B is, of course, a wholly owned subsidiary of Company A.
All totally legal. £100 million of UK taxpayers' money going, tax-free, into the coffers of a foreign company which effectively pays no tax here. Or anywhere else for that matter.
Ebay is not an auction site, it cannot be an auction site in the UK due to our binding laws on auctions, it is a marketplace.
Alan...