Posted by Christie Malry on October 11, 2011 at 9:52 pm
This is why we should keep all stupid lefty charities away from taxation:
Do you see what he's done there? He's taken the daft bit of 'research' that ActionAid produced today and, from that, insinuated that because they have subsidiaries in "tax havens" like the USA, Netherlands and Ireland, they must be avoiding tax. And he's then claiming that that's why 400,000 more children are forecast by the IMF to be in poverty by 2015.
Well, we already demonstrated that the definition of "tax haven" is so jaw-droppingly stupid that it cannot fail to capture all sorts of legitimate corporate behaviour. Indeed, any company that wishes to sell any products in Ireland or the Netherlands from a local subsidiary will be branded as having an investment in a tax haven. Wouldn't we expect every single FTSE-100 company to have ambitions to sell in Ireland and the Netherlands? Ritchie, bless him, claims that it's all the companies' fault for being so secretive about their tax planning.
But note that it's not just me that says this. ActionAid themselves admit that their work doesn't prove tax avoidance.
So Ritchie is taking a flawed bit of research which the authors accept doesn't prove avoidance to conclude that there is avoidance and that this avoidance will force 400,000 children into poverty in the future. There really is no constraint on his idiocy.