Did anybody think they would see the day in which This Blog praises Lord Nigel Lawson?
Well, he is to be praised today for coming out in support of a tax on companies’ UK sales, rather than their profits.
The suggestion was floated by a commenter on Vox Political, and has since been taken up by politicians.
Lord Lawson told the Telegraph: “It is profoundly unsatisfactory that corporation tax has to be collected from large multinational corporations by a series of ad hoc compromise deals, as we have once again seen with the Google affair.
“It is also grossly unfair on smaller businesses, who are unable to shift profits between tax jurisdictions and have to pay the full amount due under UK law.”
He’s absolutely right, and there’s nothing more to be said about it…
… Other than that – of course – the current Conservative Government won’t take a blind bit of notice.
Corporation tax should be replaced with a levy on firms’ UK sales, according to the former Chancellor Lord Lawson.
It was “unsatisfactory” tax had to be collected from big firms through “ad-hoc” deals, he told the Telegraph.
His comments come after an agreement for Google to pay £130m in tax dating back to 2005 was condemned by critics.
The government and HMRC defended the deal and the Chartered Institute of Taxation said corporation tax should not be abandoned.
Labour has called for the public spending watchdog, the National Audit Office, to investigate what it criticised as a “sweetheart deal”.
Earlier this week, the European Commission said it was considering how to respond to a letter of complaint from the SNP about Google’s tax deal with the UK.
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