Wednesday, March 02, 2016

You pay more because Vodafone pay less.

I am really not too sure what HMRC will say when they get my letter.  I will be simply explaining to them that I think I am paying way too much tax.  I work in the UK, all my tradeable activity is in the UK.  But as an individual, I think it is time for me to up sticks, tax wise, and head for Luxembourg.

That way I can pay a tax rate of 0.5%.

Now, I know you will say I’m being selfish and irresponsible.  Where is the money going to come from to pay for hospitals, police, roads, military and schools?   

I will gently point out that that is not my problem.  All I’m doing is following others like Vodafone. (Any of you got a Vodafone contract?)  They have just filed their 2015 accounts and guess what, their subsidiary based in Luxembourg pays tax at 0.5%.  And you've guessed it, they don't sell phones there!

Tax should be paid at the point of economic activity.  Not on the basis of where some smart accountant can arrange to have their taxes domiciled.  

That way our hospitals, police, roads, military and schools can be funded.  And you and I will not need to pay so much tax as the Vodafones’ of this world will be paying their proper share.

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