Town moves 'offshore' to avoid tax on local business

drunkmonkey

Welsh town Crickhowell moves 'offshore' to avoid tax on local business
The Powys tax rebellion, led by traders including the town’s salmon smokery, local coffee shop, book shop, optician and bakery, could spread nationwide

Full story here:
http://www.belfasttelegraph.co.uk/news/uk/welsh-town-crickhowell-moves-offshore-to-avoid-tax-on-local-business-34188635.html

Absolute Genius on the part of the local traders, wonder will the same thing happen here.

BoJack Horseman

There are a lot of words in that article.... none of whick mention how they actually did it!

I assume they registered their businesses in either the Isle of Man or Channel Islands.

Ireland, lacking any off-shore dominion wouldn't be able to allow similar for any company.

though making the Aran islands just like Jersey/Gurnsey would do the job.

Eric Cartman

they say they're doing it to crack down on the likes of amazon, once they realise how much more cash they have , id imagine they'll defend the arrangement to the hilt.

Manach

BoJack Horseman wrote: »

Ireland, lacking any off-shore dominion wouldn't be able to allow similar for any company.

Well, I might as well mention Rockall but I reckon the seabirds might have the strongest propriety claim
On topic, I read the book Internet Police by Nate Anderson and he had an interesting discussion on the status of such created microstates, focusing on the old weapons platform called "Seahold".

nice_guy80

Irish companies could easily move to the Isle of Man if they so wish

It had nothing to do with off-shore dominions

newacc2015

Eric Cartman wrote: »

they say they're doing it to crack down on the likes of amazon, once they realise how much more cash they have , id imagine they'll defend the arrangement to the hilt.

Amazon pay little or no corporation tax, as it barely ever makes a profit. For the last decade it has been loss making. A loss making business cant pay a tax on profits.

I hate the UK BS on tax avoidance, when British Crown Dependencies literally are what facilitates most of the tax avoidance schemes.

nice_guy80

newacc2015 wrote: »

Amazon pay little or no corporation tax, as it barely ever makes a profit. For the last decade it has been loss making. A loss making business cant pay a tax on profits.

I hate the UK BS on tax avoidance, when British Crown Dependencies literally are what facilitates most of the tax avoidance schemes.

Amazon probably does make a profit
But just like the likes of Kelloggs EU, who are based in Ireland!!!, they loan out money to other branches of the company and then write off the losses against earnings to reduce or negate any tax liability

Amazon in the USA is based in some of the most tax advantageous states for business

ZeroThreat

newacc2015 wrote: »

Amazon pay little or no corporation tax, as it barely ever makes a profit. For the last decade it has been loss making. A loss making business cant pay a tax on profits.

I hate the UK BS on tax avoidance, when British Crown Dependencies literally are what facilitates most of the tax avoidance schemes.

If amazon have been making losses for a decade, why are they still in business?

Quin_Dub

ZeroThreat wrote: »

If amazon have been making losses for a decade, why are they still in business?

Because the pay a dividend on their stock and the stock market loves them so the stock price keep going up..

They have huge revenues so cash-flow isn't a problem , neither is borrowing..

So they keep kicking the can down the road - the expectation of the markets is that eventually they'll suddenly start to make massive profits - essentially when the Amazon model has killed off the bricks & mortar sale businesses..

newacc2015

ZeroThreat wrote: »

If amazon have been making losses for a decade, why are they still in business?

In the expectation that they will make a profit in the future. Their whole business model is game changing and no one has copied it successfully. Look at the amount of competition they have killed off over the years ie Barnes and Noble, Radio Shack. They are slowly killing off competitors

As an investor looking at them, they have massive potential for growth and profitable in the future. Most share prices are based on future expectations.

ZeroThreat

newacc2015 wrote: »

In the expectation that they will make a profit in the future. Their whole business model is game changing and no one has copied it successfully. Look at the amount of competition they have killed off over the years ie Barnes and Noble, Radio Shack. They are slowly killing off competitors

As an investor looking at them, they have massive potential for growth and profitable in the future. Most share prices are based on future expectations.

So are they going to up the price once all competition has been killed of them? :eek:

shedweller

ZeroThreat wrote: »

So are they going to up the price once all competition has been killed of them? :eek:

Then another crash. Us mugs bail out a load of faceless fecks we are told we would die without. And rinse and repeat.