Thursday, June 6, 2013

WATCH: Miliband Dodges Tax Question

He says that Labour will pay tax on their dividends, but that wasn’t the question was it Ed? The key point is that John Mills avoids paying tax himself by giving the money to the party in shares. For some reason Miliband dodged that. No denial that Labour advised Mills on how to donate the money in a tax efficient way either…

Thursday, May 30, 2013

Deadline Day For MPs’ Expenses Claims Today
Happy Tax Freedom Day!

Are you an Honourable Member yet to get his or her money’s worth from the taxpayer this year? Fancy an iPad, laptop, or maybe if you’re feeling particularly piggy a cosy little rent-swap this Thursday morning? There are just a few hours left for greedy MPs who have left it late to submit expenses claims for this financial year. Guido’s source in IPSA is expecting a fair few claims to come in on deadline day, so it isn’t going to be a cheap one for the taxpaying public. Fill your boots.

Ironically, today is also the ASI’s Tax Freedom Day. This means that for the average citizen, today is the day you start to actually keep the money you earn; everything you have made so far this year went to the state in tax. Perfect timing.

Thursday, May 23, 2013

UKIP Call on HMRC to Investigate Hodge the Dodge

UKIP economic spokesman Godfrey Bloom has gone after Margaret Hodge, demanding that HMRC “investigate unanswered questions from C4 News, Sky News and Guido Fawkes about her ‘knowledge’ of the tax affairs of her family trust”:

“It beggars belief that Hodge stated that her family company paid ‘every penny’ of the tax it owed although later she admitted that did not know how much tax it actually paid. Yet, this woman is chairman of the House of Commons Public Affairs Committee. Hodge comes in at No 15 on the Times’ Politicians Rich List, with a mere £18m tied up on the family business, which is in a family trust so there is no inheritance tax to pay.  One rule them and one for the rest of the plebs?  I call on HMRC to investigate.”

Always one to help expose tax hypocrisy, here are a few questions HMRC should ask:

  • Why Hodge claimed that “I am a tiny, tiny, tiny shareholder” in Stemcor when her direct shareholding is worth £1.8 million.
  • Why Hodge holds several million pounds more worth of Stemcor shareholdings in trusts.
  • For what purpose Hodge holds these shareholdings in trusts other than to reduce the risk of a future tax liability.

As Hodge the Dodge said herself last week, “I think what we are going to have to do is order somebody to come who can give us answers to the questions…”

Wednesday, May 22, 2013

Another Downing Street Comms Success

4:43pm:

5:06pm:

Awkward.

Tuesday, May 21, 2013

Miliband’s Google Glass House

Just one problem with Ed’s Google-bashing this afternoon:

Guido readers will know that HuffPoUK is owned by AOL Limited, whose parent company is the Luxembourg-registered AOL Europe Sarl.

In 2010 AOL UK Limited, HuffPo’s esteemed owners, had a revenue of £78 million. Despite that they paid just £122,000 in corporation tax, cleverly moving £30 million out of the reach of the UK tax authorities by “repatriating” a dividend payment to a tax avoidance special purpose vehicle (SPV) AOL Europe Sarl, registered in the tax haven of Luxembourg. This meant, despite returning 38% of revenue to shareholders, they had an effective tax rate of less than 1%. Guido looks forward to Ed’s article attacking AOL and HuffPo for “going to extraordinary lengths to avoid paying taxes”. His spokesman insists that “all companies need to be responsible.”

Further reading on HuffPo’s tax avoidance hypocrisy:

James Tobin: Lefty Tax Campaigners Misuse My Name

A great little nugget in the FT this morning: before he died Professor James Tobin, he of the ill-advised Tobin Tax, accused loony lefty tax campaigners of misrepresenting his ideas: “I have absolutely nothing in common with these anti-globalisation rebels. They’re misusing my name”. The 2001 interview with Der Spiegel makes for very interesting reading:

“I appreciate attention to my proposal, but many of the praise comes from the wrong side. Look, I’m an economist and, like most economists, an advocate of free trade. Moreover, I support the International Monetary Fund, the World Bank and the World Trade Organization — everything that these movements are attacking. They’re misusing my name…  I feel that I’m being misunderstood and that my name has been wrongly co-opted for other people’s priorities. The Tobin tax offers no platform for the reforms that these people are seeking. But what can I do? Their intentions are good, I assume, but the proposals are badly thought out.”

For some reason you don’t hear that quote from today’s ‘Robin Hood’ wannabes…

Ed’s Evening With Evil Eric

Dave dodged the opportunity to ask Google supremo Eric Schmidt about his company’s commendable methods of legally maximising their shareholders’ profits when the pair met yesterday. Surely tomorrow Ed will keep his own promise and grill Schmidt about Google’s tax bill, when he is a guest of honour and keynote speaker at their Big Tent tech conference in Hertfordshire.

Presumably he won’t be repeating Margaret Hodge’s line about how Google “do evil” to his generous hosts, however…

Friday, May 17, 2013

WATCH: Tax For Dummies

The wonkish equivalent of a motherly lesson in life from the Taxpayers’ Alliance. Osborne’s suggestion that he would merge income tax and National Insurance two years ago has – surprise, surprise – gone absolutely nowhere. Hardly a shock seeing as the status quo lets him tax workers three times on the same income. It should be as easy as ABC…

Hodge the Dodge: Spot the Difference

Compare and contrast Margaret Hodge’s holier-than-thou hectoring for not answering questions with her own non-answers in her Kay Burley interview yesterday. Here is Hodge berating Amazon’s Andrew Cecil at the Public Accounts Committee:

“Well, I think what we are going to have to do is order somebody to come who can give us answers to the questions we ask. We will order somebody to appear before us who does that. It is just not acceptable. I don’t know what you take us for, but we need proper answers to perfectly proper questions, which are trying to establish the economic activity in this country, and therefore what would be a reasonable corporation tax due. That is our job. The idea that you come here and simply do not answer the questions, and pretend ignorance, is just not on. It is awful… I cannot believe you have come without the information-or they have deliberately sent you. We will order somebody who can answer the questions, in public… Dear, dear. Well, we will have to come back to this.”

And here is Hodge’s humiliating exchange on SkyNews yesterday:

MH: I’m not, I’m not, I told you, I’m not, I haven’t, you know I don’t have any dealings with the company day to day.

KB: But you did say that you were confident that every penny that should be paid in tax has been paid in tax. You’ve obviously looked into it?

MH: Yes, I’m confident.

KB: And 0.01% is enough?

MH: No it isn’t 0.01, it’s what they pay, what they pay, the profits they make on the business they transact in the UK.

KB: And how much is that as a percentage of tax?

MH: I, I, I mean I can’t give you that answer.

KB: But you did say that every penny has been paid in tax so presumably you have the figures?

MH: Sorry?

KB: You did say that every penny they should pay in tax has been paid…

MH: I, I also said to you I don’t work for that business. I’m a shareholder. I think you should ask the company if you have any questions.

“Dear, dear. We will have to come back to this”…

Thursday, May 16, 2013

WATCH: Kay Burley Skewers Hodge the Dodge

Margaret Hodge got the full Kay Burley treatment this afternoon. After a day of grandstanding at her committee, she was left spluttering about her 0.01% tax bill. Hodge had the nerve to bring up the newspapers who retracted their own stories about Hodge and tax. She has never asked for a retraction from Guido for the stories that appeared on this blog, nor has she answered our questions about her family’s use of trusts…

Read Guido’s stories and unanswered questions here.

Seen Elsewhere

May SpAd Removed From Candidates List | ConHome
Clodagh’s Law | Press Gazette
Whitehall Bosses Ban Christmas | Sun
Meanwhile, in Russia… | Media Guido
Christmas TV Tips | Laura Perrins
Labour Marginal Fright | Lord Ashcroft
Osborne’ Real Deficit Reduction Record | ConHome
Blameronism | Peter Oborne
Everyone Can Lose | Staggers
Splintering of the Left | Tim Montgomerie
Fallon’s Lawyer Loathing | Quentin Letts


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Labour insiders turn on Ed over Powell’s latest gaffe:

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