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.

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.

Hang on.
I thought we were still in.

Are you saying the government did not provide Nissan with 'reassurances'?

Were Nissan lying when they said they did?

Both can be right. McDonald's sell PRODUCTS, banks sell financial SERVICES.

Big difference.

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?

And this is regarded as a great tax coup for the UK, is it? What a bunch of fools!

You've not seen any of Junker's statements in the past?

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.

What's he said?

They don't sell burgers, they sell MacDonald beef patties

I had a hamburger al formaggio e patatini fritte in Venice. Probably sacrilege, but absolutely delicious.

Whatever happens re the single market, a free trade agreement for manufactured goods is fairly straightforward.

I got the distinct impression that his post was laced with sarcasm.

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 read this news with some relish ........

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).

I think Apple Australia has a similar Singapore setup also.

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.

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.

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.

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.