Boss wel­comes tax crack­down

Rutherglen Reformer - - News - Edel Ke­nealy

The busi­ness­man who called on Ruther­glen traders to use the same tax avoid­ance loop­holes as global com­pa­nies has wel­comed Ge­orge Os­borne’s planned shake- up of cor­po­ra­tion tax.

Ken­neth Thom, di­rec­tor of Cre­ate Bath­room and Kitchen Stu­dio on Cam­bus­lang Road, called on lo­cal en­ter­prise to fol­low in the foot­steps of busi­nesses such as Face­book in a bid to avoid pay­ing large sums of cor­po­ra­tion tax.

But this week the fourth­gen­er­a­tion busi­ness­man said he wel­comed the UK Chan­cel­lor’s plans to sup­port small and medium-sized busi­nesses.

In his bud­get Mr Os­borne said cor­po­ra­tion tax would be cut to 17 per cent by 2020.

And he vowed to re­coup bil­lions of pounds by 2020 by stamp­ing out some com­monly used tax avoid­ance tac­tics.

One of the big­gest changes is to end pub­lic sec­tor em­ploy­ees be­ing paid via per­sonal ser­vice com­pa­nies to avoid in­come tax.

Mr Os­borne also claimed he could raise £9 bil­lion by crack­ing down on multi­na­tional tax avoid­ance.

Speak­ing to the Re­former fol­low­ing the bud­get, Mr Thom said the UK Govern­ment had been forced to ad­dress mass in­equal­i­ties in busi­ness af­ter high street traders up and down the coun­try vowed to use tax loop­holes iden­ti­fied in the BBC 2 doc­u­men­tary ‘The Town that went Off­shore’.

Mr Thom, whose busi­ness em­ploys ten peo­ple and paid in ex­cess of £10,000 in cor­po­ra­tion tax last year, said the changes were pos­i­tive.

He said HMRC should be more trans­par­ent and ex­plain how ma­jor cor­po­ra­tions’ tax set­tle­ments are reached, stat­ing: “If it was widely known which com­pa­nies are pay­ing their tax then the pub­lic would be able to make an in­formed de­ci­sion on which com­pany they choose to spend their money with.

“It does not seem like a co­in­ci­dence that com­pa­nies such as Face­book have al­tered their tax struc­ture since their tax ar­range­ments were brought to the at­ten­tion of the pub­lic or that Star­bucks de­cided to pay more tax only when their mar­ket share was poorly af­fected.”

He added: “I wel­come the cut in cor­po­ra­tion tax as I be­lieve that com­pa­nies will use this tax cut to in­vest more in their busi­ness and in turn cre­ate more jobs.

“As a small busi­ness we wel­come the op­por­tu­nity to grow our com­pany and we would con­sider adding to our staff of 10 and open­ing a new bath­room/kitchen show­room if the fi­nan­cial gains jus­ti­fied the risk in do­ing so.”

Tax­ing times Ken­neth Thom

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