Google UK Ltd’s Tax Rate Was Actually 83.8% Of Profits So What Were The Guardian Talking About?
It was an unusual intervention by the Privy Council Judicial Committee, which at the height of the British Empire was a very powerful body but still retains important powers now as a last ditch court of appeals. A five-judge panel ruled in favor of Mark Lundy, who was convicted in New Zealand in 2002 after a jury decided he had attacked his wife Christine, 38, and his daughter Amber, 7, with a weapon similar to a tomahawk at the family home. Lundy received a mandatory life sentence and his appeal was dismissed by the New Zealand Court of Appeals later in 2002. He eventually had his lawyers bring the matter before the Privy Council, which had the authority to hear the appeal because New Zealand did not have its own Supreme Court until 2003. Lundy brought the case before the Privy Council committee in November, more than 10 years after losing his initial appeal in New Zealand. His lawyers argued that he suffered a “substantial miscarriage of justice” when he was initially convicted. They argued that the verdict was unreasonable and not supported by the evidence. The appeal was heard by four judges from Britain’s Supreme Court and one senior New Zealand judge. Lundy’s lawyers convinced the judges that fresh evidence should be considered in a new trial. Lundy is now in his mid-50s. The council said he should remain in prison in New Zealand until his bail request can be heard by the High Court there.
Credit: Reuters/Ki Price LONDON | Mon Oct 7, 2013 1:37am BST LONDON (Reuters) – Britain’s banks and other financial firms are at their most optimistic for almost 17 years, according to an industry survey. Some 59 percent of UK financial services firms said they felt more optimistic about their business situation, compared to 6 percent who were less optimistic, according to the latest quarterly CBI/PwC financial services survey, released on Monday. The positive balance of 53 is the highest since December 1996. The survey, covering the three months to early September, also showed a net 24 percent of financial firms increased staff in the period, the biggest rise for six years. A net 14 percent of firms expect to increase staffing again in the current quarter. The CBI/PwC survey is based on the balance of firms reporting an increase and those reporting a decrease. The survey findings indicate about 10,000 jobs were added in the third quarter and another 2,000 will be created this quarter, taking UK financial services jobs to 1.14 million, CBI/PwC estimated. Business volumes fell in the latest quarter, however, mainly in banking. The CBI said 22 percent of financial firms reported a rise in business volumes, but 32 percent said they were down. A big majority of firms expect volumes to increase this quarter, it said. “Banks’ optimism is increasingly buoyant despite seeing a slight seasonal blip in commercial and industrial volumes. Activity and profitability are expected to grow as the economy recovers, and investment in new products and infrastructure is increasing,” said Kevin Burrowes, PwC’s UK financial services leader. Profitability rose for the fourth consecutive quarter, as companies managed to offset the fall in business volumes by increasing their margins, the survey showed. With costs expected to fall, profitability should increase further in the current quarter, firms said.
But heres their report anyway : Google is back in the firing line over its tax affairs after the giant internet firm revealed it paid only 11.6m to the Treasury last year, despite generating $5.5bn (3.4bn) of business in the UK. Margaret Hodge, the chairwoman of the Commons public accounts committee who earlier this year accused Google of breaking its company motto of dont be evil said it had once again shown contempt for its customers and UK taxpayers. Googles complex tax arrangements, under which sales are booked in Ireland but revenues funnelled to a subsidiary in the tax haven of Bermuda, help the group pay minimal tax on the billions it earns outside the US. Google UK said in its latest accounts that it earned pre-tax profits of 37m on a turnover of 506m. The thing is, Google didnt pay 11.6 million in tax on that 37 million profit. Its paid 30.8 million in tax on that profit of 37 million for a tax rate of 83.8%. The actual accounts I have here. And as you can see the numbers The Guardian are using are simply wrong. The reason why theyre wrong is also simple enough to explain. Google was expensing certain of the stock awards that theyve made to staff. HMRC has, possibly correctly, insisted that these are not in fact tax-deductible expenses. They might well be correct under IFRS but theyre not under the tax rules: therefore previous tax deductions taken have to be reversed and the tax paid. Which is how Google UK Ltd is in fact paying an 83.8% tax rate in a country where the headline tax rate is 24% (for the year under discussion).
UK likely to face decade highest ‘winter’ blackouts
The Grid said reserve supplies of electricity will be wafer thin after a dramatic fall in the amount of coal-based power plants operating across the UK. And it warned it may have to issue NISMs warnings to industry to bring mothballed plant into action or increase generation to cope, Telegraph reported. National Grid expert Chris Train said that in a cold winter, the UKs electricity margin or safety buffer will be just 5 per cent, almost half last years level and the lowest since early in 2007. He told an industry conference this morning: Things will be tighter than they have been historically. He insisted it was wrong to say Britain faced blackouts and that he was confident extra energy would flow from the Continent if the country risked a supply shortage. He would not comment on the likelihood manufacturers may be forced to cut back on their electricity or gas use at times of peak demand. But the forecast will only heighten fears of the supply crunch Britain faces as older power plant reach the end of their life before a fleet of new more environmentally friendly capacity can be built. The Grids own analysis shows the availability of coal fired plant has fallen almost 20pc since last winter to 20.3Gw. This fall comes at a time coal prices are dropping, making the fuel far cheaper to use. Earlier in June, industry regulator Ofgem warned there could be energy shortages in the middle of the decade as the UK had failed to build enough new wind farms and power stations. He added that the risk of future blackouts had trebled. Which Pakistan mobile phone service operator has the best youth package? Uth Package by Ufone