As the President and Congress argue as they approach the Fiscal Cliff in the US – an argument over spending cuts and individual taxation, in the UK, Mail online reveals:
Big business makes more money but pays less tax as small firms are hit harder – Corporation tax paid by big business falls 20% while profits rose £359 billion.
The British Government should establish a new requirement on overseas takeovers of UK companies that prohibits the transfer of profits made in the UK to overseas, more lenient, regimes. This is not news, but it is an example of how real business no longer gets taxed where profits are made. International business can simply move profits around to where they want to pay as little tax as possible. This impacts small companies that cannot fight against HMRC and the rest of society that pays a higher tax bill to compensate.
“Cadbury’s new owner Kraft Foods has confirmed plans to move part of the business to Switzerland in a move which could cut its UK tax bill.
By switching a few key roles to Zurich, the US food giant is expected to pay less corporation tax, depriving the exchequer of millions of pounds.” see BBC – http://www.bbc.co.uk/news/uk-11919248