General (General discussion, talk about anything.)
H M Revenue and Customs publish annually the Tax Gap figures.
The Tax Gap is the difference between the tax collected and what HMRC assess as the tax that should be collected.
HMRC is the only country in the world to regularly publish a detailed Tax Gap report.
The latest report indicates a Tax Gap of £35 billion.
Tax evasion accounts for £5.3 billion and tax avoidance £1.8 billion.The largest single amount of the tax gap is from small companies which accounts for £14 billion.
Insofar as large companies organise their tax affairs it should be obvious that it is done on a global scale and arranged to minimise the total tax take.
The most traded global product after oil is coffee. A multinational coffee company operating in the UK may well base their EU Intellectual Property rights to their coffee bean processing in another country in the EU. When the UK arm buys it's coffee from that country the transfer price will include a charge for intellectual property rights which reduces the tax liability in the UK but increases it in the other EU country where business taxes are lower.An example of one of the methods used by global players pursuing tax efficiency.
In the same vein every Amazon sale in the UK goes through Luxembourg for tax purposes and every Apple sale goes through Ireland.
Replied: 12th Oct 2019 at 17:07