Tax Special Investigation: How Camelot has avoided millions in tax – with help from teachers in Canada

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http://www.independent.co.uk/news/uk/home-news/tax-special-investigation-how-camelot-has-avoidedmillions-in-tax–with-help-from-teachers-in-canada-8895219.html

The great Eurobond tax scandal

Camelot, the company behind the National Lottery, has avoided millions of pounds in corporation tax by exploiting a legal loophole that HMRC failed to close.

The company saved an estimated £10m in tax in the last two years through interest on loans taken from its Canadian owner via the Channel Islands Stock Exchange. Its owner is one of Canada’s largest pension plans, the Ontario Teachers’ Pension Plan board. The revelation comes as the National Lottery has doubled the price of its tickets to £2.

The Government estimated in 2012 that the loophole was costing the public purse some £200m, but publicly available accounts suggest the true cost could be more than £500m – and probably higher.


27/11/13 Having received a takedown notice from the Independent newspaper for a different posting, I have reviewed this article which links to an article at the Independent’s website in order to attempt to ensure conformance with copyright laws.

I consider this posting to comply with copyright laws since
a. Only a small portion of the original article has been quoted satisfying the fair use criteria, and / or
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Tax Special Investigation: HMRC ‘particularly feeble’ over failure to close loophole

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http://www.independent.co.uk/news/uk/politics/tax-special-investigation-hmrc-particularly-feeble-over-failure-to-close-loophole-8895209.html

Despite the tax exemption costing the UK economy at least £500m a year, the  Government bowed to  pressure after intense lobbying from the financial sector to allow companies to use it

The Government chose not to close a tax loophole which costs the UK economy at least £500m a year after intense lobbying from the financial sector, The Independent has learnt.

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More than 30 companies are paying more than £2bn in total to their overseas owners every year as interest on borrowings. As these can be deducted from the companies’ taxable UK income, this amounts to a corporation tax saving of around £500m when compared to equivalent investment in shares in the company.

Without the exemption, any tax savings from the interest deductions would be greatly reduced by the 20 per cent withholding tax that HMRC would otherwise take from interest payments going overseas. As many more companies list debt in the Channel Islands, and the loophole also works in other exchanges including Luxembourg and the Cayman Islands, the total tax lost may be significantly higher.

27/11/13 Having received a takedown notice from the Independent newspaper for a different posting, I have reviewed this article which links to an article at the Independent’s website in order to attempt to ensure conformance with copyright laws.

I consider this posting to comply with copyright laws since
a. Only a small portion of the original article has been quoted satisfying the fair use criteria, and / or
b. This posting satisfies the requirements of a derivative work.

Please be assured that this blog is a non-commercial blog (weblog) which does not feature advertising and has not ever produced any income.

dizzy

Continue ReadingTax Special Investigation: HMRC ‘particularly feeble’ over failure to close loophole

‘Public ownership a winner’ say Communists

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http://www.communist-party.org.uk/index.php?option=com_content&view=article&id=1834%3Apublic-ownership-a-winner-say-communists&catid=132%3Apress-statements&Itemid=167

Communist Party trade union organiser, Anita Halpin, has welcomed the upsurge in strikes and demonstrations against the Tory-led government’s austerity and privatisation. 

Addressing the Party’s Executive Committee in Cardiff this weekend, she accused the Tories, Liberal Democrats, and big business of `waging class war’ on workers, the unemployed and their families. 

Ms Halpin pointed to industrial action ballots and strikes by higher education staff, teachers, civil servants, fire-fighters, probation officers, and postal workers against privatisation and pay cuts and in defence of pensions, wages, jobs, and public services.

In particular, she urged solidarity with Ineos oil refinery workers at Grangemouth who have been locked out after protesting against the victimisation of Unite trade union convenor, Stephen Deans.

“The refinery is too important to the Scottish economy to remain in the hands of such a bullying, reckless, and union-busting management,” she argued, while calling upon the labour movement to demand that the SNP government in Edinburgh to take the plant into public ownership.

Britain’s Communists also reiterated their call for the Labour Party leadership to pledge to renationalise the railways, energy utilities, and Royal Mail after the next General Election.

“Such a policy would be a vote winner, now that so many people have had enough of the soaring pieces, mass sackings, and fat cat profits that always go with privatisation”, Ms Halpin insisted.

The CP leadership welcomed the formation of nearly 80 People’s Assembly groups in towns and cities across Britain. It was agreed that these should work closely in a “broad democratic alliance” with trade unions and trades councils in their locality to combat austerity policies, defend public services and build solidarity for workers in struggle.

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Npower to raise energy prices by 10.4%

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http://www.bbc.co.uk/news/business-24607242

Image of an electricity pylon treeEnergy firm Npower has become the third major supplier to announce price rises, with a dual-fuel bill to go up 10.4%.

The price rise will take effect on 1 December, and is the highest increase announced by any supplier so far.

SSE will increase prices by 8.2% from 15 November and British Gas said prices would go up by 9.2% on 23 November.

The Npower increase includes an electricity price rise of 9.3% and a gas price rise of 11.1%. The move will affect 3.1 million customers.

The change will add an extra £137 to an annual average dual-fuel bill, taking it to £1,459.

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