A Google search screen … Andrew Tyrie, chair of the Treasury select committee, said UK tax law had become too ‘elastic’. [Image: Nick Ansell/PA].

The possibility of corporations being taxed on turnover – all the money they take – rather than just profits is one that was suggested on This Blog by a commenter, only a short while ago.

Considering the fact that Income Tax is calculated entirely on our turnover, and not on any profit we make on our earnings (what profit?), this seems an entirely sensible idea. Hopefully that reader will come back and explain the thinking further.

Meanwhile, your thoughts are invited. Will this help bring balance to UK taxes? Will it highlight the disappearance of our large corporations over the decades since neoliberalism became the dominant political ideology in the UK?

Or will it be a whitewash?

MPs have launched an inquiry into the UK’s tax system after the government was accused of allowing Google to pay too little in a £130m deal.

The House of Commons Treasury committee announced that it would examine whether a radical shakeup of corporation tax was needed, amid concern that Google has been allowed to get away with an effective rate of 3%.

The inquiry is not directed at Google, but will investigate the UK’s shrinking corporate tax base more widely and whether HMRC is doing enough to tackle avoidance.

It will ask whether there needs to be a radical shakeup of the system, and whether business taxation could be based on turnover rather than profits.

Source: Google tax deal: MPs launch inquiry after criticism of £130m settlement | Business | The Guardian

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