Corporation Tax & Business Rates

Corporation Tax & Business Rates

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Discussion

SunsetZed

Original Poster:

2,257 posts

171 months

Wednesday 26th April 2017
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As I see it corporation tax is no longer fit for purpose, in today's world with large multinational corporations it is easy to legally shift profits between countries. So why have no politicians suggested changing it to say a tax based on sales values charged based on the location of the customer. I'm not saying that this is easy or perfect to do. Not least because it of course would charge loss making and profit making companies the same but surely something along these lines should be investigated.

Also business rates seem somewhat out dated as the internet is the main reason that the high street is dying, if politicians are serious about saving the high street then there must be an additional tax on online purchases, again based on the customers location makes the most sense to me. I understand this would be unpopular but VAT could be reduced (on all purchases not just online) in order to maintain the governments takings and to theoretically prevent the public from paying the full increase.

Lastly the business rates legislation needs modifying so that cash points do not incur their own rates as these are vital to elderly people and frankly they are a declining source of revenue anyway in this manner as with the increase in card payments, apple pay etc. cash will become redundant in the not too distant future and cash machines will be nothing more than a memory.

Anyway I look forward to hearing from people who are far more intelligent than me explaining why my ideas do not work so I can forget them!

SunsetZed

Original Poster:

2,257 posts

171 months

Friday 28th April 2017
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Anyone?!

PurpleMoonlight

22,362 posts

158 months

Friday 28th April 2017
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Basing it on turnover and not profit would scupper the multinationals.

SunsetZed

Original Poster:

2,257 posts

171 months

Friday 28th April 2017
quotequote all
PurpleMoonlight said:
Basing it on turnover and not profit would scupper the multinationals.
Agreed, it would also be very tricky because of the different margins in different products / industries.

PurpleMoonlight

22,362 posts

158 months

Friday 28th April 2017
quotequote all
SunsetZed said:
Agreed, it would also be very tricky because of the different margins in different products / industries.
HMRC did feel they had enough information to design a variable VAT flat rate scheme, so I would think a variable turnover tax wouldn't be that impossible.

blindswelledrat

25,257 posts

233 months

Friday 28th April 2017
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With regards to business rates, although they are annoying and often in the media I don't think they make or break a business. They are a fraction of rent hence if you can afford rent you can afford business rates.

PurpleMoonlight

22,362 posts

158 months

Friday 28th April 2017
quotequote all
blindswelledrat said:
With regards to business rates, although they are annoying and often in the media I don't think they make or break a business. They are a fraction of rent hence if you can afford rent you can afford business rates.
I beg to differ.

Last year my rates were more than my rent.