This is simply joyous:
George Turner, director of TaxWatch, said: “It seems to me this is a good deal for the US, they get to tax their multinationals more, and they get to protect themselves from companies trying to [go] offshore by making it a global deal.
“The fact Facebook and Google end up paying less tax in the UK under this deal is controversial, I don’t think you can get away from that. It wasn’t the aim of the whole game.”
Well, yes, and the US already got that deal as a result of the Trump tax changes. Non-repatriated profits now pay tax in the US. The aim and point of all that movement between Ireland and Bermuda – just to use one example – has now rather gone. But of course everyone in this game must, just must, insist that Trump didn’t solve the problem they all make their livings from.
It’s this bit that’s so fun:
Experts have warned that US tech companies, including Google, Amazon and Facebook, could pay less tax in the UK and several other big economies under global reforms agreed at the weekend by the G7.
In a key stumbling block emerging days after the landmark deal, research from the TaxWatch campaign group indicates that the UK Treasury stands to lose about £230m from the taxes paid each year by four of the big US tech firms.
Isn’t that interesting? So, under a fair and global deal – which they’ve all been touting this reform as – the Big Tech companies would pay less in the UK than they do now. Hmm, OK.
That therefore means – ineluctable logic here – that the current deal must be unfair because they’re paying £230 million more than they should be.
Which does of course mean that we’ve got to change that taxation system – can’t have one that’s morally unfit now, can we?