We must be used by now to stories in the media highlighting the apparent shenanigans that companies get up to in their efforts to pay less tax. Much of this may be justified but I wonder if things are going too far. Yesterday, The Sunday Times business section ran a story that began with a line saying that Google had “slashed its American tax bill”. With such pejorative language I assumed Google must be up to no good but the story then went on to explain. Google had reduced its taxable profits by paying its staff bonuses. Rather absurdly, the article was trying to imply that something underhand must be happening because an employer was paying its staff! It’s like saying that a fish and chip shop had “slashed its tax bill” by buying cod and potatoes!
Where tax is concerned, we seem to be heading back to the atmosphere of Salem, Massachusetts in the late 17th century. There, an outbreak of paranoia against witchcraft saw a series of now infamous trials where 200 people were tried as witches, of whom 20 were executed with 5 more dying in squalid jail conditions. Two years after the trials ended, the court that convicted the ‘witches’ admitted they were wrong and eventually a bill was passed restoring the good name of all those accused and granting compensation to the heirs of the deceased.
Now, I’m not saying that there aren’t some dodgy things going on in the tax world but do remember, just because someone has a wart on their nose, it doesn’t necessarily mean they are a witch!
West London
3 Brook Business Centre,
Cowley Mill Road,
Uxbridge, UB8 2FX
East London
London, E11 1GA
South London
London Bridge
73–81 Southwark Bridge Road,
London, SE1 0NQ
City London
London, EC2M 1JH
We believe we are more than just your average accountancy firm. Our goal at Barnes Roffe is to engage our clients through a proactive relationship, which provides you with the resources and tools you need to enable you to take charge of your finances with confidence.
Tax news, audit news and any new accounting news ... with the help of our topical tips, blogs and key guides you can enjoy the benefit of being regularly informed of business and accounting updates which are likely to be relevant to you and your business.
PLEASE NOTE: By the very nature of this type of information the details of tax law might have changed since they were published, so contact your Barnes Roffe partner before acting on any matter contained in these documents.