More UK government attacks on Global Tax Avoidance and Income Shifting

Caribbean-bank-money_laundering

Barbados had better develop some new revenue streams… like yesterday!

submitted by Not Taken

Luxembourg / Barbados / Marshall Islands – tax avoidance and income shifting is all the same shell game but it’s becoming more difficult to hide due to computers and the communication and lobbying powers of the internet.

The Brits are out to stop the game. Canada (CRA) and US (IRS) are cracking down. Barbados is very exposed. Our Government should be prepared to see its revenue from offshore businesses to decline substantially. The billion of new Treasury Bill funding to pay its bills will disappear quickly.

And at the same time as our offshore banking and companies hosting industries are coming under pressure, our tourism seems to be in a death spiral.

Many of us foresaw this situation coming ten years ago. Only fools couldn’t see it coming five years ago.

So far I’ve heard nothing from either the DLP or the BLP except excuses and criticism without solutions capable of addressing this crisis. This is not a time for gentle, incremental solutions: it is a time for radical changes, not more of the same.

Have a look at this from a Canadian newspaper…

Amazon’s U.K. unit slammed for ‘pathetic’ $3.7-million tax bill

Amazon.com Inc.’s main U.K. unit paid $3.7-million (U.S.) of taxes on its 2012 income, it said on Wednesday, despite group UK sales of $6.5-billion, prompting criticism from lawmakers and competitors.

Amazon.co.uk Ltd. added in its accounts, published through the U.K. companies register, that it received £2.5-million ($3.8-million U.S.) in government grants during 2012 – just ahead of the £2.4-million it paid in corporation tax, the U.K. form of corporate income tax.

Corporate tax avoidance has risen to the top of the political agenda in Europe following revelations in the past couple of years about how little big names like Apple Inc., Starbucks, Google and Microsoft pay in tax in markets where they reap billions of dollars in sales.

The companies say they follow the rules but U.K. Prime Minister David Cameron has called for international action on the shifting of profits, which can help firms cut tax bills.

Amazon.co.uk reported a small corporate income tax bill because all sales to British customers are routed through a Luxembourg affiliate, Amazon EU Sarl, which employs around 500 staff.

The British subsidiary, which employed 4,191 people at the end of 2012 and thousands more indirectly via contracting agencies, is deemed, for tax purposes, to be a service provider to the Luxembourg unit.

… continue reading this article at the Canadian Globe

1 Comment

Filed under Barbados, Barbados Tourism, Business, Business & Banking, Economy

One response to “More UK government attacks on Global Tax Avoidance and Income Shifting

  1. Kingsley

    Whatever happened to our own PINNACLE, headed by St. Marian Lisle Chase?  Lisle is now head honcho at NIS and ECFH.

    * Chairman at East Caribbean Financial Holdings Limited * Chairman at National Insurance Corporation, St Lucia * Chairman at Windward & Leeward Brewery Ltd.  

    Folks the theory and practice that the few rich will take care of the humongous poor is a fallacy.  Trickle down economics have and will not work.  

    The UN has given reasons why our Governments have to develop, promote and institute the Co-operative Business Model for the good of the “POOR” and our society, but successive governments believe that their party financial sponsors will solve the nations problems to no avail.

    Has anyone ever wondered why we take grant funds to pay loyalists huge salaries, instead of spending the funds on the people who it is intended to assist?

    How will state corporations work efficiently when they are manned by the same bureaucrats who we complained were not performing in the public service or failed business persons, some of whom cannot even manage a home (the first government/company/firm)?

    R. C. Kingsley St. Hill Corinth, Gros Islet, P O Box 1958 Castries Tel: (H) 758 450-2273; (C) 285-5537;  US (917) 775-7312 James 4:17 “Therefore to him that knoweth to do good, and doeth it not, to him it is sin.”

    ________________________________