County-by-county reporting: the end of tax avoidance?

As an accountant, my first instinct, when it comes to resolving the oppressive regime I call Tax Apartheid, is to introduce another layer of bureaucracy.

Bureaucracy makes the world go round in an accountable fashion that can be controlled easily by The State.

I have seen plenty of movement on international issues involving groups reporting their profits on a country by country basis. I would go even further and suggest that each individual company in a group should draw up it’s own accounts.

This alone sounds radical but I want to go further. Every company should provide accounts to every country in the world drawn up on their accounting practices and provide computations of taxable profits based on the legislation of all those countries. Only with this level of full disclosure can we truly provide Justice for Taxes.

But one step at a time.

In the meantime, I am campaigning for something that will prevent UK companies abusing enterprise zones and the regional employers NIC holiday.

Enterprise zones are designated areas where you can claim enhanced capital allowances. There see also reduced business rates in many. And the NICs holiday is only available in certain regions.

So how do we address the issue of businesses claiming these reliefs whilst actually conducting their business elsewhere?

Well this struck me as being rather similar to tax havens, and I think we would do well to stamp out these zones and regions which are desperately trying to win the race to the bottom.

So, I think we need to introduce new reporting requirements in the UK. This would take the form of county-by-county reporting where profits of businesses would be broken down into their relevant economic regions.

Then we would be able to see how these domestic tax havens are abused by multi-regional companies. We could then demand they cease putting money into these squalid areas (such as Ipswich) and channel them to the areas where their real economic activity takes place.

This will require that people are willing to boycott companies to make such things come about. But as Justice for Taxes is such a popular issue, I imagine rallying activists should be an easy matter.

Of course, the main problem with all of this is that accountants will still be preparing accounts and auditors will still be auditing then, and tax advisers will still be calculating tax based on them.

What we really need to do is to remove this unsavoury bunch of neoliberal sociopaths who just do their immoral deeds for the love of money and fees, and introduce a new Ministry of Accountancy which can do all that for The State.

That way The State can easily determine what it is entitled to. We will make accountancy, audit and tax advisory work illegal unless provided by either the Ministry of Accountancy or the Ministry of Money, so there won’t be any legal way for rightwing multinational corporations to undermine the truth.

Only then will we have everlasting Justice for Taxes.

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3 thoughts on “County-by-county reporting: the end of tax avoidance?

  1. Way too complicated. Much simpler: just increase VAT and scrap corporation tax. It should be possible to keep an approximate balance. And because the rules for VAT are so simple, it would be impossible to cheat in a significant manner. Provided that this is done sensibly (perhaps over 3 year phase-in), and the levels are set correctly (again, perhaps increasing the scope of VAT exemptions), this shouldn’t make any real difference to prices. It would even make the UK more competitive, because company accounts would be simpler.

    • Clearly you’re wrong.

      What we need is more levels of complication in preparing accounts, tax returns and other disclosures.

      If we want to levy a tax on the place of sale, we must adjust corporation tax, not VAT.

      VAT is better suited for taxing the profits of a business. Of course it will need adjusting a bit, but with my input we could soon have a fair tax system.

  2. Pingback: The Greatest Budget on Earth | The Justice for Taxes Network

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