I have done some research showing that if we were to have unitary taxation, which is a different system of taxation, businesses would pay a different amount of tax than they do under the real existing system.
The Mail has covered this and asked Barclays and HSBC for comment.
HSBC has said that it ‘applies to the spirit and letter of the law in all territories in which it operates and seeks to comply with the UK Code of Practice for the taxation of banks’.
Well that might be true, but immorally so. And the argument that tax avoidance is legal and within the spirit of the law is dead and gone, as I declared the other day. HSBC don’t apply unitary taxation which is the most moral approach to taxation (as unanimously decided by the JTN).
An unquoted source of mine within the tax avoidance industry has said that, HSBC do not apply a unitary taxation approach apparently due to the fact that “unitary taxation is not actually the law, it’s the equivalent of fiction”. She added that “it would be fundamentally illegal” to use unitary taxation.
That is sophistry. So I ask Barclays and HSBC the question that needs to be asked, why aren’t you using unitary taxation?