Quote:
Originally Posted by Hugh
However, when you artificially decrease the profits by paying "licence" fees to another subsidiary in a low-tax regime…
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Where else are the costs involved in developing and maintaining that intellectual property, supposed to come from?
That IP income is still liable for tax
somewhere.
Nobody in their rights mind would move worldwide intellectual property rights to the UK, whatever the tax level. One minute the IP tax levels are low, then suddenly they could be ridiculously high. Too unstable a political and tax environment.
The bulk of the tax paid on a car bought in the UK, but built in Germany, is paid in Germany. That is where the cost of building the car occurred. It is an IMPORT. The car showrooms etc, will earn income, and will be liable for UK tax. Again, nothing new in that.
If you earned royalties worldwide from music, which would rather do, deal with over a hundred different tax regimes in different countries, or deal with one tax regime. When they move some of that income to the UK, they are taxed on it.
Many Care homes are facing bankruptcy. The costs are constantly being driven higher, but their income isn't matching it.