The Grand Duchy of Luxembourg has rightly been accused of manipulating its tax rates to enable large multinationals like Amazon to avoid paying corporation tax on the profits that they make on business in the jurisdictions where they make the profits. The main architect of this is the gentleman who now heads the European Parliament, Mr Juncker, which shows that if you have enough front you can get away with almost anything.Luxembourg has succeeded and made itself very prosperous by helping large corporations avoid tax in high tax jurisdictions while enabling them to pay a little tax in low tax jurisdiction. The little that they pay in low tax jurisdictions represents quite a lot of extra tax revenue which Luxembourg would never had had, if they did not manipulate tax rates.
Scotland, it has been suggested, should set its own rates of income tax, while enabling Scottish MPs to vote on the rates of income tax that apply to the rest of the country. This would enable the Scots to set a low rate of income tax in Scotland while maintaining a high rate of tax in England, Wales and Northern Ireland. The Scots could thus attract business into Scotland and the revenues that went with it, on the model of Luxembourg. Such business would be most welcome to the Scots particularly as nationalists have a voracious appetite for other people’s money.
Filed under: climate change | Tagged: European Parliament, Grand Duchy of Luxembourg, income tax, law, Luxembourg, Mr Juncker, paying corporation tax, rates of income tax, Scotland, Scottish nationalism, tax, tax jurisdictions |