@hselftax tax raises some issues herehttps://twitter.com/hselftax/status/1123113681594744833 …
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The big issue on taxing tobacco is excise taxes -- both for raising revenue and reducing smoking. This report focuses on the generic issue of corporate income tax. Don't jump to the conclusion that because big tobacco is a baddie the analysis in the report must be right....https://twitter.com/TaxJusticeNet/status/1123089597238476800 …
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As the report notes BAT has an overall a cash tax rate of 26%, and an effective tax rate for subsidiaries of 30%..... so this does not look like the smoking gun of successful aggressive avoidance - don't assume this is a story of "big company pays no tax"
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TJN calculates the "lost tax revenue" by applying the tax rate in each country to the gross amount of payments to HQ e.g. for interest, royalties and management fees. This assumes that all of this is pure profit and the underlying service to the subsidiaries is 'free' to BAT.
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And then it uses an old trick to inflate the apparent scale of the "lost revenues" (which also really include the actual costs of running a multinational biz) .... it compares a sum for 7 years with public spending for 1 year. Why would you do that?pic.twitter.com/WofdQKNRgp
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So in fact this on an annual basis this sum equates to the public healthcare spending on 14,000 citizens, or 0.006% of brazil's population.
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Its not like people don't notice, or know better. I've been pointing this stuff out for everhttps://www.cgdev.org/publication/can-stopping-tax-dodging-multinational-enterprises-close-gap-development-finance …
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And when tax professionals and campaigners sit down together in good faith they can work out areas of common understanding.
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Alex justifies the tactic of bait-and-switch between several years of estimated revenues and one year of spending here http://uncounted.org/2015/07/13/did-ngos-invent-a-pot-of-gold-no/ …pic.twitter.com/1IzqGUJczI
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As Heather says the exaggeration means tax professionals won’t engage & debate wont move on. But its not just tax professionals who are having their chain pulled. Wouldnt we all be in a better position to engage constructively on this issue with less hype & more careful analysis?
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End of conversation
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@hselftax@alexcobham I have another concern in this debate and it is this report, since I read this, it made me a lot more cautious re this excise.https://theconversation.com/tobacco-tax-hikes-are-great-so-long-as-youre-not-a-poor-smoker-75211 …Thanks. Twitter will use this to make your timeline better. UndoUndo
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