Absolute Schmidt!

It’s a Sunday and the Rowntree Foundation only pay me to blog during the week. This post should get me some sort of extra recognition from them in the form of money which is not actually employment income for the purposes of income tax though it may look like it a bit.

Eric Schmidt says this in the Observer:

First, corporation tax should be paid on a company’s profits, not its revenues.

And:

Corporate taxes are levied in the country where a company conducts the economic activity, and takes the risk, that generates its profits – not where products are consumed.

Wrong!

These two statements are not true. And I have shut Mr Schmidt up there because he is obviously talking nonsense.

These two statements cannot be true because I dislike Mr Schmidt and feel the need to disagree with him whatever he says. This is despite the fact that I always say that taxes should be levied where the economic activity takes place.

I will therefore pretend that he said something else.He uses the expression “economic activity” but I know that he has used this to mean “engineering”, even though he doesn’t use this expression and clearly thinks he means economic activity, and so he is wrong.

This proves what a tax expert I am.

It also explains why many people misunderstand my clever arguments. They look at what people say and argue with that. They think I should too.

I don’t. I look at what I reckon people say and argue against that.

Given this, nobody is ever able to beat me in an argument because I can just reckon they say something stupid.

This is why I spend most of my blog putting words in other peoples’ mouths. It is so that you too, dear Reader, can see how stupid the world is when looked at from my perspective.

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One thought on “Absolute Schmidt!

  1. You will have seen reported in the Guardian that M&S is doing an Amazon. It is clear that M&S’s European website only serves non-UK customers but all the staff used to fulfill orders are in the UK. So, if all your staff are outside the UK (like Google) but you have customers here you have to pay UK tax all of your profits. Similarly, if you have all your staff here (like M&S) but your customers are overseas you have to pay UK tax on all your profits as well.

    Why do the neoliberals not get this? To keep it simple for them all profits are subject to UK tax wherever they are. That’s what unitary tax is and this is why the UK should push for unilateral adoption of it along with country by country reporting. Can’t the right wing sophists look up what unitary means?. The clue is in the word, unitary ie single – one single time. We tax everything in the UK once and have done with it. Simple. There’s avoidance everywhere on this analysis and that’s why we are so angry.

    I know this as before my life as a technology lecturer I had a life in the ‘real world’, as, amongst other things, a community worker, miner, train guard and shop worker. This makes me almost uniquely qualified to comment on tax.

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