More international corporate tax avoidance schemes

Many more voters have become aware of international corporations laundering through banks and parking money overseas in order to avoid paying taxes. They can skip helping their customers in the countries they work to stash more money in Belgium, Switzerland, Caymans, etc. These are the real 'shadow government' leaders in the world that buy off legislators around the world.

"The programme obtained confidential tax agreements detailing plans to move profits off-shore to avoid what was a 28% corporate tax rate at the time.

 

Those involved include pharmaceutical giant GlaxoSmithKline (GSK) and media company Northern & Shell.

 

Both firms told the programme they have a duty to be tax efficient.

Generous deal

In the case of GSK, the UK-headquartered firm set up a new company in the tiny European tax haven of Luxembourg in 2009.

 

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Because of the veil of secrecy surrounding all these decisions around tax...we, on behalf of the taxpayer, cannot be certain that this was a good, honest, proper deal”

Margaret Hodge MP Public Accounts Committee Chair

 

In 2010, the new subsidiary lent £6.34bn to a GSK company in the UK.

 

In return, the UK company paid nearly £124m in interest back to the Luxembourg subsidiary - effectively removing that money from the UK company's profits.

 

That move meant the money was no longer available to tax in the UK at 28%.

 

In Luxembourg, tax authorities had agreed a generous deal to levy tax on that £124m at effectively less than 0.5%, or just over £300,000.

 

As a result, GSK in the UK potentially avoided up to £34m in UK corporation tax."

http://www.bbc.co.uk/news/business-17993945

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Comments (1)

  1. camerondicks

    Really the international taxes are too much for a businessman or for a trader. But, there always exist a middle way and hence the way here is that there are many schemes by using that you can avoid the most of the tax without turning it into black money. I think that the australianwritings service also reveals a lot of information on these schemes.

    March 14, 2017