I have just exposed the fact that Rolls-Royce pays no UK corporation tax on its profits in other countries.
One of the reasons given for this immoral outrage is that Rolls-Royce conduct their research and development in the UK and this lowers their corporation tax lability with R&D tax relief. (Another is that their profits arise elsewhere but that’s sophistry).
Well, that is an admission of tax avoidance because it is the single biggest tax avoidance scheme included in my tax gap calculation and because it is in my tax gap calculation it must be avoidance.
R&D tax avoidance schemes cost the UK over £1 bn a year. The scheme was snuck into a finance bill over ten years ago by a secondee from a top accountancy firm.
It is time we ended this neoliberal nonsense and restricted scientific tax incentives to important political and economic research such as my own.