G7 taxation proposals vs zero-10

[The Dog's Dangly Bits]

1 hour ago, Andy Onchan said:

Why do e-gaming companies pay tax when most other companies pay zero?

They pay tax where their revenues arise.  Do you think they don't?

[The Dog's Dangly Bits]

1 hour ago, finlo said:

To ease their conscience?

To be fair they contribute to the tax take here more than any other sector and are the reason you are paying the percentage of tax you are now.

[finlo]

2 minutes ago, The Dog's Dangly Bits said:

They pay tax where their revenues arise.  Do you think they don't?

If he did why would he ask why they pay tax? As you would say "think about it".

[The Dog's Dangly Bits]

1 minute ago, finlo said:

If he did why would he ask why they pay tax? As you would say "think about it".

I thought he was being deliberately obtuse to be honest.

Having said  that there is an alarming lack of understanding about the industry (as you seem to prove) so i guess anything is possible.

[Albert Tatlock]

Point is...even this agreement is full of loopholes which we need to exploit.

 

ETA: 'Agreement'...my arse.

Edited June 6, 2021 by Albert Tatlock

[finlo]

7 minutes ago, The Dog's Dangly Bits said:

I thought he was being deliberately obtuse to be honest.

Having said  that there is an alarming lack of understanding about the industry (as you seem to prove) so i guess anything is possible.

Now let me see, they bleed you dry until you're on the bones of your arse have I missed anything?

[The Dog's Dangly Bits]

Just now, finlo said:

Now let me see, they bleed you dry until you're on the bones of your arse have I missed anything?

Definitely.  That's happening to a small frection of the client base.  Which is obvious when you think about it.

[Flyingfemme]

At first glance the whole thing seems like a dream for big accounting companies. More wooly rules with potential for vast loopholes while governments are seen to be “ doing something” about the “ tax problem”. The numbers behind the profit accounting will be far too complex to scrutinise properly and the opportunity for double counting (or triple, or more) overheads and expenses when calculating those profits are huge.

Currently it looks like only a few, really big, companies are being targeted but, once established, everyone will be subject to the same rules. Something else to stop small firms growing organically..............

[SleepyJoe]

The challenge to Jersey and Guernsey of a new international tax settlement

https://www.taxresearch.org.uk/Blog/2021/06/07/the-challenge-toi-jersey-and-guernsey-of-a-new-international-tax-settlement/

[The Dog's Dangly Bits]

An ideal statement from Jersey and Guernsey would be " do one Murphy, you annoying prick"

[Lagman]

On 6/6/2021 at 8:08 PM, Derek Flint said:

past performance is no guarantee to future performance, as they say. 

Thank Christ

[Lagman]

https://www.itv.com/news/channel/2021-06-03/us-president-to-force-end-of-jersey-and-guernseys-zero-ten-tax-system

"This is about big companies and their sales and services and goods in large domestic economies. It's not really about our kind of centre. We're investment centres. We're not house trading businesses. It's investment capital that's done here and I don't think any of those companies store their capital in Jersey."

Richard Murphy - https://www.itv.com/news/channel/2021-06-07/g7-tax-reforms-a-challenge-to-the-very-core-of-jersey-and-guernsey

It's kind of weird that we aren't even mentioned in these.

https://www.theguardian.com/technology/2021/jun/06/global-g7-deal-may-let-amazon-off-hook-on-tax-say-experts

https://japantoday.com/category/politics/g-7-nations-sign-key-pact-to-make-tech-giants-pay-fair-taxes

https://www.mail.com/int/business/markets/10845124-g-7-steps-to-deter-tax-dodging-multinational-firms.html#.1258-stage-mostviewed1-1

https://www.bbc.co.uk/news/blogs-the-papers-57372626

“The ones that have traditionally served the personal market — that is the palm tree market if you like — they are by and large going to get away with this,” said Richard Murphy...."

“It is the large corporate locations like Luxembourg, like Ireland, like the Netherlands that are really going to be picking up the hit here,” he said.

Countries worst hit are expected to lobby hard to retain as many of their tax advantages as they can. Key accountancy definitions such as “profit” and “tax paid” are still to be defined, Murphy said.

While Murphy saw less impact on many traditional British tax havens..."

“Tech is obviously going to be hit but so is financial services in a big way,” Murphy said. “Banking and finance are all in the firing line for this, as are potentially some of the pharmaceutical companies.”

https://www.businesslive.co.za/bd/world/2021-06-08-britains-treasure-island-network-of-tax-havens-under-threat-as-tide-turns/

 

[TheTeapot]

A whole industry of small firms helping big ones to *not* make a profit will spring up.

[Yibble]

2 hours ago, TheTeapot said:

A whole industry of small firms helping big ones to *not* make a profit will spring up.

If that were possible, they would already be doing so. In addition to internationally recognised accounting standards, there are long established anti-avoidance rules for preventing artificial manipulation of profits, notably requiring the arm's length principle for transactions with connected parties, restriction of head office expenses and restriction of 'excessive' interest expense. It would be very odd indeed if the new regime did not incorporate similar rules.

[Banker]

Crown dependencies to work together on this

https://guernseypress.com/news/2021/06/09/crown-dependencies-shoulder-to-shoulder-on-tax-changes/