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McDonalds to move from Luxembourg to the UK


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Old 08-12-2016, 20:25
onecitizen
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It all depends on why the likes of McDonalds are coming. If they're simply relocating to the UK in order to avoid paying tax and not because they think it's a good place to do business, that's not necessarily a good thing.
I'm contused. We get told major financial HQ's are coming to the UK to escape regulation in the EU but we get threatened that because of Brexit banks may leave London to go to the EU in spite of the regulations? Both positions can't be right.
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Old 08-12-2016, 20:32
howard h
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'Treat obesity'. I think that should be self help, not the nhs.
Yes, keeping away from fast-food joints would be a start!

I'm contused. We get told major financial HQ's are coming to the UK to escape regulation in the EU but we get threatened that because of Brexit banks may leave London to go to the EU in spite of the regulations? Both positions can't be right.
Anyone coming here to pay tax is good news. However, if it's a race to the bottom r/e tax, ie they pay less here than anywhere else, then by default they aren't paying as much as they could be if everyone was the same. Sort of.....

Add to that, if they think it's cheaper here, what happens when another country offers them even cheaper tax rates? They move...or do we lower ours even more....for everyone...reducing our tax income??
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Old 08-12-2016, 20:45
onecitizen
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Yes, keeping away from fast-food joints would be a start!



Anyone coming here to pay tax is good news. However, if it's a race to the bottom r/e tax, ie they pay less here than anywhere else, then by default they aren't paying as much as they could be if everyone was the same. Sort of.....

Add to that, if they think it's cheaper here, what happens when another country offers them even cheaper tax rates? They move...or do we lower ours even more....for everyone...reducing our tax income??
I don't think its just down to tax, although thats part of the equation. London is a massive financial centre with all the experienced personnel on hand, English speaking and in the "right" time zone etc. Its like Nissan in Sunderland the BBC were obsessed with discovering some non existent secret deal when it recently attracted new investment, when the truth is it is just a hugely efficient factory with a superb local supply chain.
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Old 08-12-2016, 20:50
alan29
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Wait a minute, didn't the remainers say that the exact opposite would happen ?
Hang on.
I thought we were still in.
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Old 08-12-2016, 20:51
kidspud
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I don't think its just down to tax, although thats part of the equation. London is a massive financial centre with all the experienced personnel on hand, English speaking and in the "right" time zone etc. Its like Nissan in Sunderland the BBC were obsessed with discovering some non existent secret deal when it recently attracted new investment, when the truth is it is just a hugely efficient factory with a superb local supply chain.
Are you saying the government did not provide Nissan with 'reassurances'?

Were Nissan lying when they said they did?
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Old 08-12-2016, 21:12
niceguy1966
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I'm contused. We get told major financial HQ's are coming to the UK to escape regulation in the EU but we get threatened that because of Brexit banks may leave London to go to the EU in spite of the regulations? Both positions can't be right.
Both can be right. McDonald's sell PRODUCTS, banks sell financial SERVICES.

Big difference.
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Old 08-12-2016, 21:50
Bacon&Eggs
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You make it out as though the only villain is the company, what about the governments who make these deals? The companies haven't broken any of the laws, and it's all created by the governments.
From what iv read, Mcdonalds argued to Luxembourg that the profit flowing into the HQ had already been taxed in the US, they quoted a little used rule (Double Taxation avoidance) from US/Luxembourg trade treaties to convince Luxembourg to allow them a zero taxation rate. I find it hard to believe Luxembourg fell for it but it's possible.

Either way, it's Mcdonalds coming to the UK not Luxembourg so that's my interest.

In any case, if they don't come to the UK, they would have found another country to do business.

The UK will gain tax revenue, as they have to pay some tax, they can't pay zero tax.
They'l pay it in the US...

Margrethe Vestager, Europe’s competition commissioner, stated: “A tax ruling that agrees to McDonald’s paying no tax on their European royalties either in Luxembourg or in the US has to be looked at very carefully under EU state aid rules. The purpose of double taxation treaties between countries is to avoid double taxation – not to justify double non-taxation.”
https://www.theguardian.com/business...alds-tax-deals
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Old 08-12-2016, 21:59
Jayceef1
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From what iv read, Mcdonalds argued to Luxembourg that the profit flowing into the HQ had already been taxed in the US, they quoted a little used rule (Double Taxation avoidance) from US/Luxembourg trade treaties to convince Luxembourg to allow them a zero taxation rate. I find it hard to believe Luxembourg fell for it but it's possible.

Either way, it's Mcdonalds coming to the UK not Luxembourg so that's my interest.



They'l pay it in the US...


https://www.theguardian.com/business...alds-tax-deals
Did you miss this bit?

The new holding company will pay UK tax on the royalties the firm receives outside the US.
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Old 08-12-2016, 22:20
Mr Oleo Strut
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Good News


http://www.reuters.com/article/us-eu...0TM17J20151203

They'l look to pay no Corporation tax, employ less than 20 people at the new HQ and funnel money through the UK HQ into some other Tax haven where the money will sit collecting dust. Pointless
And this is regarded as a great tax coup for the UK, is it? What a bunch of fools!
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Old 08-12-2016, 22:25
Jellied Eel
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I find it hard to believe Luxembourg fell for it but it's possible.
You've not seen any of Junker's statements in the past?
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Old 08-12-2016, 22:39
Bacon&Eggs
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Did you miss this bit?
I see the Google, Amazon, Starbucks controversies haven't affected you're scepticism of corporations and the UK Government.

Once the lawyers and accountants sit down in private the Corporation tax is negotiable.
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Old 08-12-2016, 22:41
Bacon&Eggs
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You've not seen any of Junker's statements in the past?
What's he said?
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Old 08-12-2016, 22:51
NilSatisOptimum
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They get the banks, we get the burgers.
They don't sell burgers, they sell MacDonald beef patties
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Old 08-12-2016, 23:12
Granny McSmith
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Pah. I bet you've had un burger Royale avec fromage in your time.
I had a hamburger al formaggio e patatini fritte in Venice. Probably sacrilege, but absolutely delicious.
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Old 08-12-2016, 23:21
BrokenArrow
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Are you saying the government did not provide Nissan with 'reassurances'?

Were Nissan lying when they said they did?
Whatever happens re the single market, a free trade agreement for manufactured goods is fairly straightforward.
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Old 09-12-2016, 00:12
Fizix
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Oh, please stop it!

NURSE! NURSE!
I got the distinct impression that his post was laced with sarcasm.
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Old 09-12-2016, 01:13
i4u
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Good News


http://www.reuters.com/article/us-eu...0TM17J20151203

They'l look to pay no Corporation tax, employ less than 20 people at the new HQ and funnel money through the UK HQ into some other Tax haven where the money will sit collecting dust. Pointless

Won't it be a repeat of George Osborne's farce over taxes with google?

Meanwhile in Australia...

Fast food giant McDonald's Australia cut its tax bill by more than half in 2015 by routing payments via the low-tax nation of Singapore.

McDonald's reduces its profit, and thus its local tax bill, by using a legal loophole that allows it to pay McDonald's Asia Pacific based in Singapore, and registered in Delaware, a "service fee" amounting to hundreds of millions of dollars.
And this sounds familiar...

....."McDonald's pays its fair share of tax in Australia and conducts its business within all standards and regulations," ....
Will they drop French fries from the menu as a protest at the EU and introduce Russian salad as a populist move?
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Old 09-12-2016, 01:14
spiney2
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I read this news with some relish ........
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Old 09-12-2016, 07:24
kidspud
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Whatever happens re the single market, a free trade agreement for manufactured goods is fairly straightforward.
Whether a FTA is straightforward or not is yet to be seen, however it didn't answer my question.

I've no doubt the government did a deal with Nissan (I seem to remember that when asked they did not deny it).
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Old 09-12-2016, 08:06
Icaraa
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Won't it be a repeat of George Osborne's farce over taxes with google?

Meanwhile in Australia...



And this sounds familiar...



Will they drop French fries from the menu as a protest at the EU and introduce Russian salad as a populist move?
I think Apple Australia has a similar Singapore setup also.
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Old 09-12-2016, 08:28
i4u
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Whether a FTA is straightforward or not is yet to be seen, however it didn't answer my question.

I've no doubt the government did a deal with Nissan (I seem to remember that when asked they did not deny it).
In the recent OBR Budget report they point out they specifically asked the government
if the Nissan assurances created contingent liabilities and the Treasury refused to say.

... at each forecast we also ask the Treasury to detail any newly created contingent liabilities that might pose a risk to our forecast. On this occasion we asked specifically whether any contingent liabilities had been created in respect of assurances provided to Nissan and the Treasury declined to say.
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Old 09-12-2016, 12:30
Jellied Eel
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Both can be right. McDonald's sell PRODUCTS, banks sell financial SERVICES.

Big difference.
Not so much in this case. The HQ or function that's relocating to the UK provides services, ie franchise fees, royalty or licence payments etc.
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Old 09-12-2016, 13:19
BrokenArrow
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In the recent OBR Budget report they point out they specifically asked the government
if the Nissan assurances created contingent liabilities and the Treasury refused to say.
Coupled with the Tata announcement, one must assume the government has at long last decided its time it put a stop to de-industrialisation.

It looks like we have the industrial policy that many have been asking for and that can only be good news.
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Old 10-12-2016, 01:08
PunksNotDead
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Great news. McDonalds, a very respected food chain that provides a cheap service for working class folk and creates millions of jobs for those without degrees or qualifications such as students who are studying
Actually McDonalds are cutting jobs, replacing humans with self service robot machines.

The idea is that instead of chatting away to a live human being at the register to order your food instead you deal with an automated kiosk
Link
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Old 10-12-2016, 01:25
niceguy1966
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Actually McDonalds are cutting jobs, replacing humans with self service robot machines.


Link
Unless the dozen or so accountants they need at their European HQ are being replaced by robots that isn't really relevant to this debate.
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