Tag Archive | "Apple"

You Kante Be Serious?

Tax is a subject we talk a lot about on this blog. Tax, tax, tax…and more tax…we just can’t shut up about it.

You will have heard us talk about big companies such as Amazon and Apple, who pay virtually NO tax here on British shores.

You will have also heard us talk about big name football stars such as Ronaldo and Messi who tried to get away from their tax duties by setting up offshore accounts.

That’s why it comes as a surprise when we have just heard about Premiership football star N’Golo Kante. The famous Chelsea player who has just signed a new £290,000 a week deal with the Blues.

Not bad money if you can get it…but get this…Kante has made it clear that he will pay HMRC every single penny they are owed.

In other words, he won’t be trying to send his money away in some kind of offshore bank account and he won’t get involved in some kind of dodgy film finance scheme (Sorry Rooney).

Now, Kante will pocket a cool 15 million from his new deal with Chelsea, which means the tax man or woman will come knocking for around £6.7 million in tax.

Here is the interesting part. This means our man Kante will pay MORE tax than Amazon.

That’s right. You heard it here first.

Last year Amazon only paid £1.7 million pounds to HMRC, despite the fact they rake in billions all around this country of ours.

Many pundits have hit out at the online shopping giant, but so far, nothing has been done to find out exactly why their contribution to HMRC is so low.

On the other hand, N’Golo Kante is only making 15 million, but he has no problems paying his due and writing out a cheque payable to “HMRC.”

“6.7 million pounds only” – he will write on that cheque, and then, with a first class stamp on the front of the envelope he will pop it in the postbox at the top of his street.

“Back of the net!” he may even say, as he pops it in.

But is Kante going to be scoring an own goal? In the opinion of us here at Contractor Accountants…maybe.

Why? Because although his intention is no doubt a noble one, we think he should at least try to save a bit of that £6.7 million tax bill.

Not much, just a bit.

The good news is that Kante doesn’t have to do anything dodgy. Everything will be completely above board.

All he has to do is hire a contractor accountant. They might be able to bring his tax bill down to £4.7 million at a guess. A saving of 2 million pounds…at a guess.

Everything legal. Everything down the straight and narrow.

Kante still gets to do the right thing and pay into the system, but at the same time he saves a bit of money. For that…we would salute him.

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No Pay Francais – Google Beat The French Government

It seems that Google are in the news a lot recently, typically having to hand over a cheque to some country or another for back taxes.

Well, it looked like they were getting ready to write out another cheque to the French Government, for around 1 Billion pounds, until a court ruling decided they didn’t have to pay a penny.

This time it appears Google took on the French government…and won, but will that be the end of it? I don’t think so.

So what is this all about exactly? Quite simply, the French government claim that Google owe over a billion in tax for the year 2005 up to 2010, and they were determined to get it.

However, Google have had their day in court, and a top judge has ruled in their favour, although many pundits have commented that it is strange that the search engine giant paid so little in tax during those years.

Just what is going on here? Who knows exactly, but what I do is that this isn’t the last time we will be hearing about Google and the subject of tax in the news.

It was only last year of course when Google reached a settlement with the UK government for 130 million in back taxes. Maybe that is where the French government went wrong…they should have asked for less.

This was always going to be a tough one for the French government if you ask me, because although Google did have an online presence in France during those years, they didn’t have any “permanent establishment” within the country, instead trading as Google Ireland Limited from their base in the Republic of Ireland, which is a subsidiary of their main company based in America.

Some experts argue that Google should have to pay taxes for those years, even if they didn’t have a physical address or place of business in France, while others argue that internet companies are different than traditional based businesses and the normal tax rules don’t always apply.

One thing I do know is that other big companies such as Apple and Amazon will have been watching this whole thing carefully, as they are also being investigated by the French authorities for back taxes.

Over the next few years I reckon that many of these tax matters are going to be a lot more straight forward, mainly because the European Parliament are about to pass new rules in regards to multi national companies and where they make their profits.

In other words, a company such as Google would have to give a detailed breakdown of exactly where every penny comes from, which would make it easier for countries such as France to know how much has been earned within their borders from internet customers.

Will the French government ever see any money for those back taxes? Something tells me they won’t, and if they do, then it will only be a small settlement, similar to what the UK government got last year.

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Google Have to Pay £259m Tax Bill in Italy

Regular readers of this blog will be only too aware of the headlines about google and the subject of income tax. It seems they are always in the news.

Well, it’s happened again, this time in Italy where the Italian government had launched a criminal investigation against the search engine giant.

Experts were expecting this to end up in court where there would have no doubt been a big showdown, but instead the end result is a little less dramatic

It has just been announced that Google will pay the country of Italy exactly £259m, or 306m Euros, which is believed to cover tax that was owed to the government of Italy over the last 10 years.

This is in addition to any income tax that Google has already been paying of course, which means they have definitely handed over a decent amount of change to the Italians…although reluctantly.

Part of the criminal investigation against Google appeared to mention something about taking approximately 1 Billion Euros of revenue out of Italy and putting it into bank accounts throughout Ireland, although Google denies any wrongdoing.

Now that the criminal investigation has been dropped I’m sure that Google and Italy will be friends again, at least for a short while.

If you remember, I reported a while back on how Google paid the UK government £130m, and at the time many people were calling the amount “laughable.”

Obviously the Italians must be better negotiators than us, because they have got paid over £100m more than the UK, despite the fact that Google have a major base in the UK and make far more revenue there.

It really does make you wonder is going on here? Perhaps Google in the UK just have better contractor accountants working for them? Freelance professionals recognise the importance of getting a good accountant…it looks like Google do as well.

This isn’t the first time that Italy have gone after a technology giant, as it was only 2 years ago they got payment on a tax bill for 318 Million Euros from Apple.

So the Italian government have got at least 2 large payments in their bank account recently, it makes you wonder if they have anyone else on their list? Let’s wait to see what happens.

In regards to Google, they still might have more payments to make in Europe because the French government are currently demanding a 1.6 Billion Euro payment for unpaid taxes.

They are planning to launch a criminal investigation soon just like Italy did, although it wouldn’t surprise me if an agreement is made at some point.

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Apple to Challenge European Commission over Tax Charge

Like I’ve reported about before on this blog, companies such as Apple don’t seem to be paying much tax in many European countries, especially the UK.

Now I’m not saying they are doing anything wrong you must understand. Not at all. It just seems strange that a company which turns over Billions in countries like the UK and Ireland barely pays anything in tax.

You would have thought their tax bill is in the millions, but in actual fact it’s not uncommon for them to pay nothing at all.

Maybe they have the best contractor accountants working for them around the clock? It is possible, and I’m sure they do have some very good financial people making sure the books are kept in check. Any company, or contractor for that matter, spends a bit of money each year on hiring good accountants. It just makes sense.

Well, the European Commission seems to think that Apple owe the country of Ireland nearly 15 Billion Euros in back tax, and it looks like Apple are not impressed.

So much so that they have opposed the ruling from the European Commission, and lodged 14 “pleas” against them.

This comes after a report by the European Commission alleged that Apple were involved in an illegal tax deal in Ireland, which led to them paying not much tax at all.

Well, Apple are not taking these allegations lightly, and have launched an attack against the Commission, saying that the report is based on “fundamental errors.”

It doesn’t surprise me that Apple have decided to defend their corner, because at the end of the day nearly 15 billion Euros is a lot of money, even if you are one of the most successful companies in the world.

With that being said, if the Commission is correct in their findings then it is difficult to see why they shouldn’t pay.

What I do know is that most contractors in the UK and Ireland are not going to be that bothered with what goes on between the European Commission and Apple. Sure, it makes for an interesting story, but at the end of the day you are probably more interested in you and your business.

The best way to make sure you get your tax right is to hire a contractor accountant in the UK who can do everything for you. Yes you can do it yourself, but for most people their time is better off spent elsewhere if you ask me.

Focus on what you are best at, and let your accountant do what they are best at, because at the end of the day you don’t want to end up with any kind of bill for back taxes.

Let’s wait to see what happens with Apple and the European Commission on this one. I am sure they will work something out.

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