28-07-13, 10:33 AM
Quote:If I was to take out a loan to buy equipment that I need to do the work, I could claim the interest on that loan against tax. This is how I understand F1 does it.
And fair enougth. But,
Quote:The fact that the loan comes from another, legally separate, company within the same group is irrelevant but it does mean that the money all comes out of the same bucket and doesn't actually go anywhere.
Exactly. So Bernie borrows the money for his right hand pocket out of his left hand pocket. So if he swaps the money over in his pockets he doesn't have to pay any tax!
Now that sucks big time. But will our government close down these loop holes (umm no). And if no big companies are paying their corporation tax, well where is the money going to come from.
Or is it simply the case that people in the UK want a tax system where the less you earn the more you pay. As that is what we have.
Don't you think Bernie should be paying some tax, maybe even his fair share?