February 2nd, 2009

Guardian’s Tax Hypocrisy is Ridiculous

The multi-millionaire columnist Polly Toynbee is this morning ranting against tax dodging corporations in the Guardian. The paper has even set up a campaigning website with fancy interactive graphics. According to the their own annual report Guardian Media Group made £306.4 million before tax. Using astute tax planning and legal manipulation of the tax laws; such as the use of an equity owning trust and a Caymans Islands offshore corporation to avoid stamp duty, they managed to only pay get a rebate of £800,000 in tax last year. That is less than they paid the Guardian Media Group’s chief executive, Carolyn McCall, she got a package of £827,000 whereas so the media fat cats got paid by HM Revenue Commissioners a mere £800,000 in corporation tax. Unbelievable isn’t it?

Here it is in black and white:

 

GMG P + L

The hypocrisy of the Guardianistas is just beyond satire, they are starting a campaign to get corporations to pay more tax, just like they campaign to undermine private education yet themselves went to private schools, they rail against City bonuses yet pay the editor and CEO hundreds of thousands in bonuses. Media fat cats attacking City fat cats is just laughable. Polly says “it’s time to rattle and bang in protest at this outrage”. Quite. Guido has tried to mention this on the Guardian’s Tax Gap campaign blog to no avail…

UPDATE 11.55 : Richard Brooks from the Guardian’s “Tax Gap” blog emails to say they are going to explain the Guardian Media Group’s situation using the same approach they used on the FTSE 100 corporations. Incidentally, before anyone points it out, this blog is published by an offshore corporation owned by an opaque charitable trust, in a remarkably similar way to the Guardian set-up. However, crucially, this blog takes an editorial line which is hypocrisy free, Guido is opposed to most forms of taxation in principle: “Do unto others as you would have them do unto you.”

UPDATE 12.09 : As some have pointed out, that looks like an £800,000 tax rebate, rather than a payment. Even worse. No wonder the Guardian can afford shiny new fancy offices…

UPDATE 16.50 : Note amendments and strike-throughs, also note that the Tax Gap blog has now let Guido’s comments through. They also cite Richard Murphy as a tax expert who approves of GMG’s tax strategies. Richard Murphy is hardly independent, he is a regular writer for the Guardian. The Cayman’s dodge was tax neutral they claim. Except when, in the future, it comes to capital gains tax of course.



Media Reader

Clear Public Interest in Newmark Sting | Mirror
In Court With TV Licence Non-Payers | Guardian
Mail Online Charging £65,000 Per Page of Native Advertorial | FT
Paxo to Channel 4 | Guardian
Media Movements: James Lyons to Sunday Times | Media Guido
Rebekah Brooks in Line for £7 Million Payout | Times
Where is Paul Mason? | Charlotte Henry
Yes Scotland’s Geo-Targeting Advertising Fail | MessageSpace
Westminster Has Patronised Scots | Scottish Sun
BBC Crew Attacked in Russia | BBC
UK Top 10 Influencer Political Blogs | Cision


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cynic says:

Can anyone help me? I went on holiday a week ago and returned to find someone has pulled out the stake and Gordon Brown is back and acting as Prime Minister. What did I miss? Has there been a snap election?


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