Companies That Don’t Pay Taxes in the UK

Posted: October 17, 2012 in controversy, politics
Tags: , , , , , ,

It was in the news yesterday that Starbucks don’t pay taxes in the UK.  Basically, they have paid just £8.6 million in tax in the UK since 1998.  This is despite a profit of £3 billion pounds.  So how the hell were they able to do this?  Surely they are breaking the law?  Well, no, they’re not…  What Starbucks, a so-called “ethical” company does, is pay fees and royalties for other parts of Starbucks around the globe.  So, technically, Starbucks is making a loss, rather than a £3 billion profit.  Worst of all, HM Revenue & Customs seem to have no problems with this type of behaviour.  But Starbucks isn’t the only company that does this!  Let’s take a look at some of the other big players in the UK that conveniently don’t pay any, or very few, taxes here.

 

Vodafone – Keeping Britain in the Red

Vodafone earns hundreds of millions of pounds of money from people in the UK every year.  In fact, they have some 19 million customers.  Guess how much money in corporation tax they paid though?  None!  This is very strange, because the year before that, they paid £140 million in tax, but they made fewer profits…  The way they do this is by offsetting their tax bill against their capital expenditure.   In fact, the chairman of Google – Eric Schmidt – said well done to Vodafone.  According to him, the laws in the UK are so easy to get around that companies should take advantage of this.  Why pay anything above the minimum right?

The Wonderful World of Philip Green

Philip Green has long been the target of UK Uncut because he has been able to avoid corporate tax.  Bear in mind, as well, that this spineless little weasel even worked as a government advisor.  What Philip Green has done is bank offshore.  He owns a company in Monaco, which is run by just a single person: his wife Tina Green.  She is technically the owner of the Philip Green empire, and since she is not a UK resident, she is not subject to UK corporation tax.  This means some £285 million in tax does not get sent back into the country.  He then also manages to offset any loans and charges from Arcadia (the name of Philip Green’s company) against charges and profits.  Not just that, the man manages to pay himself £1.2 billion a year for holding 92% of the Arcadia company.  He said that this isn’t excessive, because he is “risky business”.  Yeah, no shit!  But then he takes it a bit further.  He doesn’t want to “lose” any money either, so he uses overseas sweatshops (child labour!) and other companies where there is no such thing as minimum wage, and even if there is, it is ridiculously low.  Next time some tells you that they got rich through hard work, ask them who’s hard work!

By the way, Philip Green owns the following companies in the UK:

  • BHS
  • Topshop
  • Dorothy Perkins
  • Burton
  • Outfit
  • Miss Selfridge
  • Evans
  • Wallis
  • Etam

And of course, every time he buys one of these companies (because he didn’t start them up), he sells them on to his wife in Monaco within 24 hours.  Clever little man, isn’t he?  So think about it next time you shop at one of these stores.

These are but a few of the shops.  It is expected that there are many more, Boots being one of them, for instance.  Think hard where you shop, because most of these stores have made cuts in their numbers of staff since the recession started, when there is no need to since their profits are larger than a mere mortal could possibly comprehend.

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