APPLE AVOIDS CORPORATION TAX
Oh dear! George Osborne’s big idea to get the economy started was for all us business owners to give away some of the equity that we had worked so hard to create to our employees and create the “John Lewis” economy report Harris & Co accountants Northampton. Unfortunately he forgot that Lehman Brothers was 30% owned by its employees and we all know the trouble that the collapse of Lehman Brothers caused!
Now it seems that Apple has awarded shares worth more than £43m to its employees. Unfortunately for George Osborne this largesse counts as a tax deduction and as a result Apple paid no corporation tax for the year ended 30 September 2012. In fact, the employee shares not only eliminated Apple’s taxable profit for the year but also allowed Apple to carry forward a £3.8 million tax credit!
Now Margaret Hodge the chairman of the Public Accounts Committee (who’s own family company pays virtually no UK tax) is accusing Apple and others of “avoiding paying their fair share pf tax in this country”. Er sorry, but they just done what the Chancellor wanted them to do and got a tax break as a result! MP’s and Margaret Hodge in particular clearly have no idea of tax law and seem only to think of tax as some kind of “moral” issue. It isn’t – it’s about what the rules devised by parliament are about.
If you don’t like the result, Margaret, as you set the rules, change them!