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Tech giants face 2% UK digital services tax

bbc.com

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Re: Tech giants face 2% UK digital services tax

#61

Post by Marazan »

chrisseaton wrote: post #43
moate wrote: post #27

Earlier quoted context omitted.

I mean, the UK is literally changing the law to require them to do it because they felt that the companies weren't paying their fair share, so it seems like they felt that something wasn't quite right.

The fact that they changed the law rather than used the existing one makes it crystal clear that it was legal.

Not really. The GAAR makes many "technically legal" schemes illegal. But it requires expensive and long litigation by Hmrc to prove it.

Passing a new law short circuits the process.

Re: Tech giants face 2% UK digital services tax

#62

Post by drstewart »

user5994461 wrote: post #35
Rjevski wrote: post #30

Earlier quoted context omitted.

There's a difference between killing people and (legally) avoiding tax. I care about innocent people dying, but I couldn't care less that greedy governments get less money (they don't deserve any money to be fair, considering how bad of a job they're doing).

Are you American because it sounds like you're an American and you hate your government? There are countries where taxes actually pay things like healthcare, unemployment benefits or retirement and not financing wars in the middle east.

Are you European and send in additional money to your revenue collection agency?

No? You're avoiding taxes (or evading taxes) by choosing to pay the lowest legal amount you're obligated to. Therefore, you must be American. What a paradox!

Re: Tech giants face 2% UK digital services tax

#63

Post by chrisseaton »

Marazan wrote: post #55
chrisseaton wrote: post #34

Earlier quoted context omitted.

They aren’t evading taxes. If they were evading they’d be prosecuted rather than a new tax being introduced. They’re avoiding. Like we all do with our ISAs and pensions. If you misuse the terms it makes it harder for everyone to talk precisely about the issue.

Tax avoidance is not the same as pensions and ISAs. Pensions and ISAs are tax planning. Using government mandated tax reliefs for their intended purpose. Tax avoidance is using government mandated tax reliefs for unintended purposes. Try not to misuse terms, it makes it hard to talk precisely about the issue. https://www.gov.uk/guidance/tax-avoidance-an-introduction

Your link just confirms this is avoidance and not evasion.

Re: Tech giants face 2% UK digital services tax

#65

Post by jedberg »

This will only hurt the people who live in the UK. Those companies will just raise their prices to cover the tax. Sure maybe the local companies could then undercut Amazon if they somehow don't have to pay the tax, but eventually they'll just raise their rates to match because why give up the profit margin if they don't have to?

It doesn't matter anyway, the tax will never happen. They're just using it as a point of negotiation for a new US trade deal after Brexit.

Re: Tech giants face 2% UK digital services tax

#66

Post by nurino »

repsilat wrote: post #50
fredley wrote: post #5

Good. It is becoming more and more apparent that there is a toll on society created by these companies. They have a negative impact on our domestic businesses (traditional brick and mortar, as well as home-grown digital businesses) not to mention our mental health and even democracy. By taxing them, hopefully we can go some way to reversing some of that damage (although I'm less hopeful of that...).

A level playing field makes sense, and domestic companies are at a disadvantage if their local profits are taxed while foreign companies' "local profits" are taxed offshore at a lower rate. That said, this doesn't level the playing field, it tips it towards local companies. The tax on business revenues should apply to domestic companies as well, and it should apply to businesses of all sizes. If it has to be netted a…

There's absolutely nothing wrong with a government tipping the playing field towards local companies.

Re: Tech giants face 2% UK digital services tax

#67

Post by rtkwe »

vorticalbox wrote: post #39

It's nice to see they can plan a road map for tax but for brexit.... It sounds good but something tells me it will end up increasing prices for consumers.

They did have a plan for Brexit but I think it amounted to 1) eat cake 2) still have total access to mainland Europe's cake markets too.

On a more serious note a tax plan is easier because the government only has to negotiate with itself while Brexit actually involves outside countries who are disinclined to give the UK a cushy deal.

Re: Tech giants face 2% UK digital services tax

#68

Post by pbhjpbhj »

chrisseaton wrote: post #43
moate wrote: post #27

Earlier quoted context omitted.

I mean, the UK is literally changing the law to require them to do it because they felt that the companies weren't paying their fair share, so it seems like they felt that something wasn't quite right.

The fact that they changed the law rather than used the existing one makes it crystal clear that it was legal.

Not really. Often new laws are simply more specific, making prosecution easier.

For example a "noise nuisance" law covers a subset of offences that a "breech of the peace" law does. Other subsets could be covered by blasphemy laws, profanity laws, etc..

Along with being more specific it's a chance to declare a moral position and appear to be doing new things to protect citizens/subjects.

Re: Tech giants face 2% UK digital services tax

#69

Post by kevmo »

jedberg wrote: post #65

This will only hurt the people who live in the UK. Those companies will just raise their prices to cover the tax. Sure maybe the local companies could then undercut Amazon if they somehow don't have to pay the tax, but eventually they'll just raise their rates to match because why give up the profit margin if they don't have to? It doesn't matter anyway, the tax will never happen. They're just using it as a point of…

This is a great argument for breaking up these tech giant monopolies.

Re: Tech giants face 2% UK digital services tax

#70

Post by plehoux »

jedberg wrote: post #65

This will only hurt the people who live in the UK. Those companies will just raise their prices to cover the tax. Sure maybe the local companies could then undercut Amazon if they somehow don't have to pay the tax, but eventually they'll just raise their rates to match because why give up the profit margin if they don't have to? It doesn't matter anyway, the tax will never happen. They're just using it as a point of…

Statu quo is also hurting the local economy. All local businesses have to charge taxes to customers, they are at disadvantage to foreign based companies.
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