Monthly Archives: October 2013

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.

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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

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‘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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Tax Special Investigation: Firms running NHS care services avoiding millions in tax

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http://www.independent.co.uk/news/uk/home-news/tax-special-investigation-firms-running-nhs-care-services-avoiding-millions-in-tax-8892925.html

Companies running care services are among many avoiding millions in tax through a legal loophole. In the first of a series, Emily Dugan and Richard Whittell report

NHS sign

Companies receiving lucrative government contracts to run care services looking after tens of thousands of vulnerable people are avoiding millions of pounds in tax through a legal loophole.

The firms are cutting their taxable UK profits by taking high-interest loans from their owners through the Channel Islands Stock Exchange, an investigation by Corporate Watch and The Independent has found. By racking up large interest payments to their parent companies, they are able to reduce their bottom line and cut their tax bills.

The news will increase concern about NHS reforms that are seeing private companies take more responsibility for services. It also raises questions about the Government’s commitment to tackling corporate tax avoidance, which David Cameron has said “corrodes public trust”.

Over the course of this week, The Independent will reveal how more than 30 UK companies, including some of the UK’s most recognisable brands, are benefiting from this legal tax loophole, known as the quoted Eurobond exemption. HMRC considered restricting the use of the loophole in 2012 but never took action.

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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: Firms running NHS care services avoiding millions in tax

Libyan politician to fight UK attempt to keep role in his rendition secret

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http://www.theguardian.com/world/2013/oct/20/libyan-politician-uk-role-rendition-secret

Lawyers for Abdel Hakim Belhaj to challenge government’s efforts to have his case thrown out or tried in secret

Image of Abdel Hakim Belhaj

Lawyers acting for a Libyan politician who accuses MI6 and the CIA of secretly sending him and his pregnant wife to be tortured by Muammar Gaddafi will on Monday fight a UK government attempt to prevent those responsible from being brought to justice.

Abdel Hakim Belhaj and his wife Fatima accuse the government, MI6 and the former foreign secretary Jack Straw of false imprisonment, conspiracy to cause injury, abuse of public office and negligence.

Belhaj’s abduction in 2004 with the help of MI6 came to light when documents were found in Tripoli after Gaddafi’s fall two years ago. They revealed that MI6’s Sir Mark Allen congratulated the Libyan intelligence chief Moussa Koussa on the safe arrival of the “air cargo”, and noted that “the intelligence [on Belhaj] was British”.

The government is expected to argue that the case should be thrown out because it would damage UK-US relations. It is also expected to argue the case is beyond British courts’ jurisdiction given the alleged unlawful acts took place with other states’ help, notably the US and Libya.

Government lawyers have indicated that if necessary they will seek to have the case heard in secret courts set up this year by the Justice and Security Act.

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