Category Archives: Tax and spending

Fresh calls for windfall tax on companies that prospered during Covid

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Research highlights six firms that increased their profits by a total of £16bn

Campaigners have issued fresh calls for a windfall tax on companies that prospered during the pandemic, after research highlighted six firms that increased their profits by a total of £16bn.

The outsourcing firm Serco and online clothes retailer Asos were among the companies that saw their global profits more than double over the last financial year, while one investment trust, Scottish Mortgage, saw its returns grow to nine times the average of preceding years.

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European banks storing €20bn a year in tax havens

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Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

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G7 plan ‘will slash UK tax revenue from US tech firms’ say experts

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Global tax changes could mean Treasury loses £230m digital services tax receipts from Google, Amazon, Facebook and eBay

Experts have warned that US tech companies, including Google, Amazon and Facebook, could pay less tax in the UK and several other big economies under global reforms agreed at the weekend by the G7.

In a key stumbling block emerging days after the landmark deal, research from the TaxWatch campaign group indicates that the UK Treasury stands to lose about £230m from the taxes paid each year by four of the big US tech firms.

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G7 aims to reach historic deal on corporate tax abuse this weekend

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Talks hosted by Rishi Sunak believed to be very close to agreement in principle on global reforms

The G7 group of wealthy nations is close to a historic agreement to radically reshape international tax rules by using a global minimum rate of corporation tax to prevent abuse of the system by multinationals.

Finance ministers from the world’s biggest western economies were negotiating details late on Friday with the aim of reaching a landmark deal early on Saturday as part of talks being held in London.

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European finance ministers say deal to stop global tax abuse is ‘within reach’

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France, Germany, Italy and Spain increase pressure for an end to loopholes that enable multinationals to pay minimal tax

The EU’s four biggest economies have raised the pressure for a landmark agreement to curb tax abuse by multinational companies to be reached at G7 meetings in London on Friday.

Sending a united message in a letter in the Guardian, the finance ministers of France, Germany, Italy and Spain said a critical moment had been reached to strike a blow against tax avoidance as governments around the world attempt to rebuild from the Covid-19 pandemic.

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Cyprus could block EU adoption of minimum corporate tax plan

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EU directive on Joe Biden’s proposal for 15% tax rate on multinationals would require unanimous support

Cyprus could veto the EU’s adoption of Joe Biden’s proposal of a global minimum corporate tax rate, the country’s finance minister has suggested.

A White House proposal of a 15% tax rate for multinationals applied to profits in all jurisdictions is expected to be endorsed in principle by finance ministers of the world’s seven largest economies, the G7, at an upcoming meeting in Cornwall.

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Biden corporate tax plan could earn EU and UK billions, study shows

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EU forecast to reap extra €50bn per year with UK expected to gain €200m from BP alone

A proposal to be tabled by the US president, Joe Biden, at the upcoming G7 meeting for a 15% global corporate tax rate could reap the EU €50bn (£43bn) a year, and earn the UK nearly €200m extra alone from the British multinational BP, according to research.

Should the tax rate be set higher at 25%, the lowest current rate within the seven largest world economies, the EU would earn nearly €170bn extra a year – more than 50% of current corporate tax revenue and 12% of total health spending in the bloc.

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‘Silicon Six’ tech giants accused of inflating tax payments by almost $100bn

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Study claims firms paid $96bn less in tax between 2011 and 2020 than the notional figures cited in their annual reports

The giant US tech firms known as the “Silicon Six” have been accused of inflating their stated tax payments by almost $100bn (£70bn) over the past decade.

As Chancellor Rishi Sunak called on world leaders to back a new tech tax ahead of next week’s G7 summit in the UK, a report by the campaign group Fair Tax Foundation singled out Amazon, Facebook, Google’s owner, Alphabet, Netflix, Apple and Microsoft.

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Boris Johnson under pressure from Biden and activists in run-up to G7

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US pushing UK hard over minimum corporate tax and swift action on global Covid vaccinations

Boris Johnson is facing mounting pressure from Joe Biden and grass roots activists to be bolder at next month’s G7 summit amid signs that rows over vaccines and tax will dominate what the prime minister hoped would be a low-key event.

The chancellor, Rishi Sunak, kicks off two weeks of intense international diplomacy ahead of the June gathering of the leaders of major western economies in Cornwall when he hosts a virtual meeting of finance ministers and central bank governors on Friday.

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‘Raise my taxes – now!’: the millionaires who want to give it all away

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Abigail Disney has parted with $72m – and thinks the rich need to pay far more tax. As Covid widens the inequality gap, she and an international league of the super-rich are urging governments to take their money

Abigail Disney has always been very, very rich, or, as she describes it, “too rich”. The money came with her name: she is the granddaughter of Roy Disney who, with his brother Walt, founded the Walt Disney Company in 1923. Disney, 61, refuses to say how much she has, but acknowledges she would have been a billionaire in her own right had she not realised in her 20s that it was her fortune that was making her miserable, and decided to start giving it away.

She has been donating to good causes ever since – $72m (£52m) and counting, mostly to groups helping women in prison, women living with HIV, and victims of domestic violence. But giving it away is no longer enough. She wants the tax collector to take more money, not only from her, but from “all of the absurdly rich people across the world”.

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The foreign royals and billionaire tax exiles collecting UK’s furlough millions

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Read the list of super-rich claimants, from Saudi princes to Dubai monarchs, tax exiles to the UK’s richest

Glympton Park is a sprawling, 2,000-acre estate featuring an 18th-century stately home, nestled in the verdant Oxfordshire countryside near Woodstock.

It was bought for £8m in 1992, by Prince Bandar bin Sultan bin Abdul Aziz al-Saud, the senior Saudi royal whose past roles include ambassador to the US. He is said to have spent £42m on renovations, including a pheasant shoot and bullet-proof glass on the driveway to thwart would-be assassins.

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Budget 2021 live: Sunak to freeze income tax thresholds and raise corporation tax to pay for Covid recovery

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Latest updates: chancellor extends furlough, universal credit uplift and stamp duty holiday

Sunak turns to corporation tax.

Sunak says he will announce two measures now to address the borrowing.

The government’s response has been fair, he says.

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Keir Starmer under pressure to back plans for corporation tax rise

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Labour leader has faced backlash after saying he would oppose any new tax on business in budget

Keir Starmer is under pressure to back future rises in corporation tax after a backlash when the Labour leader said he would oppose any new tax on business in next week’s budget.

Treasury officials are believed to be looking at increasing the tax on company profits from the current rate of 19% to up to 25% as the government tries to recoup some of the massive debts incurred during the pandemic, though the rise may be delayed until later in the parliament.

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Economic cost of Covid crisis prompts call for one-off UK wealth tax

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Tax experts and economists outline ‘fairest, most efficient’ way to repair public finances and quickly raise £260bn

The government has been urged to launch a one-off wealth tax on millionaire households to raise up to £260bn in response to the coronavirus pandemic, as the crisis damages Britain’s public finances and exacerbates inequality.

The Wealth Tax Commission – a group of leading tax experts and economists brought together by the London School of Economics and Warwick University to examine the case for a levy on assets – said targeting the richest in society would be the fairest and most efficient way to raise taxes in response to the pandemic.

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British Virgin Islands commits to public register of beneficial owners

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Announcement follows years of tax evasion scandals involving BVI shell companies

The government of the British Virgin Islands has finally committed to introducing public registers of beneficial ownership for companies incorporated in the tax haven.

The announcement, made in the islands parliament, comes in the wake of years of tax evasion and money laundering scandals, in which shell companies incorporated in the territory regularly played a central role.

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Biden tells Trump ‘you are the worst president America has ever had’ in battle over taxes – video

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During the first presidential debate, Donald Trump was pressed on the New York Times story over his tax returns, which showed he paid only $750 in federal income taxes in 2016 and 2017. The president claimed he had paid “millions” in income taxes and said he would release his tax returns soon, which he has been saying since 2015. 

Joe Biden said Trump 'does take advantage of the tax code' and 'pays less tax than a schoolteacher'. Trump shrugged off the criticism, saying all business leaders do the same 'unless they are stupid'. The exchange escalated with Biden telling his rival: 'You are the worst president America has ever had'

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Up to £3.5bn furlough scheme cash may have been wrongly paid out

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Error and fraud rate for scheme estimated at between 5% and 10%, says HMRC chief

The government believes it may have paid out up to £3.5bn in wrong or fraudulent claims for the furlough scheme.

Jim Harra, the top civil servant at HM Revenue & Customs, said that his staff had calculated for the possibility that as much as 10% of the money might have gone to the wrong places.

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Tories warn Rishi Sunak amid Covid tax hike rumours

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Several Conservative backbenchers argue that focus must be on supporting a continued economic recovery

The chancellor, Rishi Sunak, has been urged not to introduce tax hikes in his November budget by Conservative backbenchers who argue they would damage economic recovery.

The intervention followed speculation the Treasury could raise £20bn through extra levies to deal with the fallout from Covid-19.

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UK to drop ‘Facebook tax’ in favour of post-Brexit trade deal

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Recently introduced tax would have raised £500m, helping to reduce Britain’s huge Covid bill

The UK government is preparing to drop a recently introduced tax on global technology companies such as Facebook, Google and Amazon, due to fears that the so-called “Facebook tax” could jeopardise a post-Brexit trade deal.

Rishi Sunak is reportedly planning to ditch the digital services tax which was expected to generate about £500m to help pay towards the huge cost of the government’s response to the coronavirus pandemic.

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Over-40s in UK to pay more tax under plans to fix social care crisis

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Exclusive: Matt Hancock is advocate of plan to raise tax to cover cost of care in later life

Everyone over 40 would start contributing towards the cost of care in later life under radical plans being studied by ministers to finally end the crisis in social care, the Guardian can reveal.

Under the plan over-40s would have to pay more in tax or national insurance, or be compelled to insure themselves against hefty bills for care when they are older. The money raised would then be used to pay for the help that frail elderly people need with washing, dressing and other activities if still at home, or to cover their stay in a care home.

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