Posted by Christie Malry on April 18, 2013 at 9:37 pm
Ritchie says the following on nPower and their alleged avoidance:
So the question is, and 38 Degrees are right to ask it, is whether this is ethical? My suggestion is that it is not. If tax compliance is paying the right amount of tax but no more in the right place at the right time then I think the structure used means that tax is paid in the wrong place – i.e. in Germany and not here
To which someone rightly points out that the corporation tax rate in Germany is higher than in the UK. It's a strange sort of avoidance that means you transfer profits from a low tax jurisdiction to a higher one.
Headline rates and effective rates may not be the same
Germany has a big problem with effective rates
The Germans can't tax something as vanilla as interest income? Really, Ritchie?
Really, is this the best you can do?