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The truths they don't want you to read....

Saturday, August 20, 2011

Tax avoidance and tax reduction

Jim McColl, boss of Clyde Blowers, was extensively quoted by the Scottish Government in the
proposal vacuous nonsense that passed for a policy paper on Scottish Corporation Tax.

The STUC rather entertainingly take the paper apart for it's generalities and false citations of the output of right wing American think tanks being described as by "The World Bank".

Mr McColl is on the radio tomorrow am defending his position; which I think needs more examination.
a Scottish business leader
Mr McColl lives in Monaco, making McColl a Monegasque businessman who owns a Scottish business.
Mr McColl - who is one of Scotland's richest men - also hit out at critics who have described him as a tax exile over his decision to base himself in Monaco. 
The Clyde Blowers chief, whose personal worth has been estimated by the Sunday Times Rich List at £570m, said: "For a start I think 'tax exile' is an emotive phrase - I don't think it is a fair phrase to use. 
 Is the phrase "legal tax dodger" less emotive?  His choice of residence means that he pays no personal income tax on the dividends he receives from the company, and were he to sell the company then he would pay no capital gains tax in the UK or in Monaco.  (See also Philip Green and Lord Ashcroft [Belize])

But I would say about most of the people who criticise this - I probably contribute more to the economic benefit of the UK and Scotland in a year than they do in a lifetime
I think he might find that his employees contribute more to the economy, albeit under his guidance, but the difference is that his employees have no option but to pay all their taxes in the UK; whilst he can swan off and avoid contributing his fair share to schools and hospitals.
"So, I am very focused on investing in Scotland and passionate about Scotland."
If that's really the case then he can set an example and confirm that if Scotland ever got control over it's own tax system, then he will tax up tax residence in Scotland and pay taxes on all his worldwide income in Scotland.

The Scottish Government meantime, could promise to crack down on this kind of tax dodge.  Compare the situation to Stagecoach this week, where Souter is UK resident and pays full UK taxes on his obscene income.

You see, McColl's position is based solely on one simple five letter word - G-R-E-E-D.  Reduce my tax bill, and I'll earn more tax-free; far, far away.


Anonymous said...

Angus you really are the epitome of a lefty unionist. When Scotland becomes independent don't think for a minute that your faux socialist nonsense will be anywhere near the mainstream position in Scotland. Self righteous, swotty Herberts will be as ignored and mocked as they are now. There will be no redemption nor Promised Land for the Scottish left and anyone who thinks otherwise is living in the cloudy land of the cuckoo. I also note that you have added 'hypocrites' as a tag for this post. An accountant upbraiding someone for tax avoidance, well that really does take the biscuit.

Thatcher's b'stard children said...

10:06 I think mocking is too good for Angus.

Surely in the new Free-market Scotland he can be sent for "re-education" and made to sit endless Highers in Scottish Studies and Gaelic until he denounces his cadre.

All this will happen in the Gulag at Aird Uig through a gate with a slogan about Work and Freedom.

Anonymous said...

Angus, if Jim McColl had a bit of a tiff with his accountant and decided to bin him or her, and so happened to give Nicolson & Co a call, would you accept his business?