I have to pay 40% of my income as income tax. I have HAD ENOUGH. This is infuriating. What can we do?
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Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
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Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#12Why can't governments learn that taxing corporations is pointless? The same revenue is can be raised more simply through sales tax and personal income tax on salaries and distributions.
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#13Meanwhile my (single-person) company is paying around 20% corporation tax, and then I'm getting taxed a further 20-40% on top of that when I pay myself.
Don't forget your cap gains and consumption taxes
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#14I have to pay 40% of my income as income tax. I have HAD ENOUGH. This is infuriating. What can we do?
I guess earn enough so that it makes sense to pay a lawyer and an accountant to create this setup for yourself... maybe a startup idea? :)
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#15Meanwhile my (single-person) company is paying around 20% corporation tax, and then I'm getting taxed a further 20-40% on top of that when I pay myself.
Isn't salary a deductible expense?
You're right - but it depends how and when you pay yourself... a balance of salary and dividends, where dividends are not deductible. For me I may have a good year followed by a weak year, so I use last year's profit to keep me going!
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#16Meanwhile my (single-person) company is paying around 20% corporation tax, and then I'm getting taxed a further 20-40% on top of that when I pay myself.
Invest your surplus then you won't have any profit to be taxed upon.
Which is what Microsoft is doing.
Alternatively lobby your government to replace corporation tax with a company payable tax on the labour a company uses - which is actually what tax is for: to release manpower for the government use.
Then Microsoft can't avoid it by profit shifting.
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#17Isn't the US levying corporate tax on worlwide income anyway (since the last tax reform). So it's "only" a matter of deciding whether those taxes should be paid in US vs. other countries (and if the intellectual property was developped mostly in the US, it seems fair for the US to get most of it).
I would say that it would more fair if tax was paid in the end users home country. This way these worldwide mega cooperation's would help every country where they sell their products instead of all the money goes to the US.
In 10 years from now it could easily be China that owns many of these mega cooperation's. Would you find it fair if the tax money from china "MS", china "apple", china x all would go to China and the USA would get zero.
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#18Why can't governments learn that taxing corporations is pointless? The same revenue is can be raised more simply through sales tax and personal income tax on salaries and distributions.
Populism is a hell of a drug.
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#191. It's infeasible that Microsoft had profits of 200 billion euros.
2. A comment on the Guardian's journalists' potential financial conflicts of interest:
Re: Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year
#20220bn profit? Really? Surely they mean "revenue"
The included financial report says profit, not revenue.