Amazon controversy highlights need for proper tax policy

/ Posted By - Bradleys Accountants / Categories - Advice for Small Businesses

At the moment, tax avoidance is a hot topic issue, with several large corporations being accused of failing to pay their fair share. The tax policies of Apple, Google, Starbucks, Amazon and Vodafone have caused a public outcry, with many claiming big businesses are taking more in government grants than they’re putting back into the system.

Even financial expert Martin Lewis has described these large corporations as breaching a “moral boundary”, costing the UK billions of pounds of uncollectible tax. Countless Britons are outraged, saying big businesses are cheating the system.

The numbers speak for themselves:

Just lately, Thames Water has been added to the list of high profile companies using tax loopholes. Last year, the company received a £5 million credit from the Treasury but paid no corporation tax.

So what’s next for big name tax rebels like Google, Starbucks, Amazon and Thames Water? The government could deal with the problem in a number of ways: by closing loopholes or simplifying tax code, denying public sector contracts to companies who aren’t paying their fair share, creating a new code of conduct for accountancy firms, policing the tax system or better equipping the HMRC to investigate tax dealings of multinational companies.

Although the media is doing a good job of naming and shaming companies and individuals who’ve taken advantage of tax loopholes, this is a worldwide problem that requires widespread government crackdowns. Britons agree – approximately 80 per cent of people want to see the government take more aggressive action with regards to tax avoidance.

What does this mean for you and your company? Basically, the climate is changing. People are taking a stand against businesses who aren’t giving back to the system. As such, you should go through your tax policy with a fine-toothed comb, with the assistance of chartered certified accountants who will ensure your tax code is up-to-date.

Related Articles

Why are small businesses not using accounting…
| Advice for Small Businesses

All over the internet there’s advice on why businesses should switch to accounting software, particularly if they want to transition smoothly … Read more

Download: Your Budget summary report & new…
| Advice for Small Businesses

Yesterday Philip Hammond delivered the 2017 Spring Budget speech of this Government. So what exactly did the Chancellor say and, more … Read more

Spring Budget 2017 – key points for…
| Advice for Small Businesses

Today saw the unveiling of Hammond’s first – and last* – Spring Budget Statement, bringing with it as always tax changes, … Read more

X

Subscribe to the newsletter

Know about latest accountancy updates, company news and business growth tips. Every month, in your inbox

    Subscribe to our newsletter