Sure. The Tax Vodafone is accused of 'dodgin' is tax on profites made by their Eurozone subsidiary in Germany.
They paid tax on the profits in Germany, then paid residual corporate tax on teh profits in Luxembourg, then imported the profits from that sub company to the UK. On which they paid a minimal amount of tax again (over £1billion, can't remember figures).
If they "dodged" tax because they paid the tax where the profits were made instead of within the UK, then the argument is that profit tax should be paid where you incorporate, I disagree with this, you should pay it in the country you're working, but there is an argument there.
but Arcadia is a UK company that pays full UK tax. However, Arcadia is owned by a Monaco resident, so her dividends as owner are paid to her in Monaco and she pays tax on them there (not much, given Monaco is a tax haven, but that's what she does).
You simply can't argue that Vodafone is dodging taxes by paying them where they make the profits and that Arcadia is dodging taxes by paying them where the company is owned, you have to have it one way or the others.
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timeasmymeasure
no subject
Date: 2011-05-30 11:11 am (UTC)They paid tax on the profits in Germany, then paid residual corporate tax on teh profits in Luxembourg, then imported the profits from that sub company to the UK. On which they paid a minimal amount of tax again (over £1billion, can't remember figures).
If they "dodged" tax because they paid the tax where the profits were made instead of within the UK, then the argument is that profit tax should be paid where you incorporate, I disagree with this, you should pay it in the country you're working, but there is an argument there.
but Arcadia is a UK company that pays full UK tax. However, Arcadia is owned by a Monaco resident, so her dividends as owner are paid to her in Monaco and she pays tax on them there (not much, given Monaco is a tax haven, but that's what she does).
You simply can't argue that Vodafone is dodging taxes by paying them where they make the profits and that Arcadia is dodging taxes by paying them where the company is owned, you have to have it one way or the others.