It had to happen sooner or later: UK Uncut, the provisional wing of Her Majesty’s Revenue & Customs, have decided that Barclays, a business which moved heaven and earth in order to avoid a government bail out, selling businesses and going cap-in-hand to arab potentates instead, is now well capitalised and safe, having mostly paid off its creditors, who made a significant profit for their risk.
Well done all round – the people taking the risk profit for bailing out a business, which thaks to good management (including from the justifiably well remunerated Bob Diamond) continues to pay tax – income taxes, banking levy, NI, non-reclaimable VAT etc… and didn’t cost the UK tax-payer a penny. If maximising tax revenues, as UK uncut claim to want to do, what is their problem? But corporation tax is, like 28%, innit. Tax avoidance! Waaaaaaa!
Now I don’t need to tell you, this is wrong because, like all banks, Barclays lost enormous amounts of money during the crisis, it is allowed to carry those losses forward, and offset them against future profits, which it is now making. It only paid 9% corporation tax in 2009. I’m not going to crunch the numbers, others have done so, but should this really be surprising anyone with even the faintest idea of how the Tax system in any grown-up country actually works? Barclays is now making profits, largely thanks to the (boo!) investment bank, including the assets of (double boo!) Lehman Bros. which it bought in the fire-sale, and will pay corporation taxes when it’s used up the brought forward losses, just like every other business in the UK.
What do UK Uncut actually want? Are they profoundly stupid, or deeply dishonest?
http://bracken.uk.com/wp-content/uploads/2017/07/logo-2.png00Malcolm Brackenhttp://bracken.uk.com/wp-content/uploads/2017/07/logo-2.pngMalcolm Bracken2011-02-21 08:23:002017-07-21 01:43:50Barclays, in the firing line.