Saturday, 19 February 2011

Man United v Crawley Town every week: or the big corporations v the taxpayer


Those who oppose the UKuncut actions against Barclays and other corporate targets really have misunderstood the situation quite badly. Some have even proposed that the protest should be targeted at the Tax offices which appear to be unable to enforce payment of tax by these corporations.

Yet there is a REASON why the tax offices are under-resourced and unable to make these companies pay their faor share of tax. These companies use their considerable wealth to obtain political influence, especially with the Conservative Party. The donations they make (probably out of the billions they save from not paying tax) ensure that these offices are always unable to make large multinationals pay their fair share of tax. They ensure that the wages paid to staff there are considerably less than the wages available to corporate tax accountants who ensure that these corporations avoid the tax, thus ensuring that the best accountants are on the side of the companies. It is a bit like Manchester United playing Crawley Town every week.

These corporate donations also buy politicians’ inaction on closing the loopholes that enable their accountants to hide their profits in places like the Cayman Islands. Or indeed they buy politicians’ action on creating such loopholes.
So it is rather like Man Utd Playing Crawley Town every week but also supplying the ref, the linesmen and on a pitch which is sloping towards the Crawley Town goal and having their goal on wheels and a zip-wire so that it can be moved backwards and forwards very quickly along the goal-line.

This is what those who argue against the targetting of the banks by UKuncut have forgotten. The people involved in chasing these corporations are mostly players from the Vauxhall Conference and the people working for the companies are the Wayne Rooneys. These companies have huge political influence, most of it behind the scenes, which allows them to distort the tax regime and means of collection in their favour.

As such the people mostv responsible for creating corporate tax regimes which favour large corporations like Barclays, are the very multibillion pound congliomerates which benefit from the lax tax regime and the loopholes they provide.
Understanding this is crucial to understanding the way the new politico-business establishment functions in modern society.

No comments:

Post a Comment