UNIONS AVOID PAYING CORPORATION TAX BILL – Hypocrisy is a byword in the Unions for on the one hand they stand and declare their allegiance to the workers and on the other they enrich themselves with wealth and power.
Yes, that is the true face of socialism for whilst the Unions rally on behalf of the people the only ones who really gain are the Union officials and politicians that support them.
According to reports Labour’s biggest union donors pays nothing in corporate tax; this is despite making millions from the investments whereby cash is generated from workers contributions.
Of course the likes of Ken McClusky will stand on his soap box and vilify the corporations who legally avoid paying taxes.
Yes this year alone we’ve been bombarded with tales of how Google, Starbucks and Amazon have managed to avoid paying vast sums of money over to the taxman.
Most of us find the accounting practices of these corporations disgusting for here we are slugging our guts out in order to make ends meet with the Government surgically extracting our taxes at source, whilst the corporations are left to take advantage in the loopholes that allows them to avoid paying tax.
Go on, have a good old moan and point the finger at Google, Starbucks and Amazon if you must but you are being foolish and naïve.
Why? The truth is that all corporations have a responsibility to their shareholders to maximize profits and therefore dividends. Why would any corporation hand over tax when it is not legally required?
If you want to point the finger and you should, then point it at the Government for these incompetent fools are not able to create appropriate tax legislation and therefore hand over the responsibility to the large accounting firms such as KPMG.
In turn KPMG is employed by many of the corporations in order to find ways to avoid paying tax – yes it’s like giving a serial killer the keys to his jail cell but that is the true face of how inept our MPs and Minister are.
The report today unveils that the biggest Union donors to Labour managed to rake in almost £10 million from their investments this year and despite them attacking the tax dodging corporations not one of them has paid a single penny in corporation tax on these vast profits.
The Unions, as with the corporations, exploited the system fully in order to avoid paying any form of corporation tax – it’s easy when you look at how they can offset profits using sick pay, accident compensation and a whole plethora of other loopholes.
Current records indicate that Len McClusky’s Unite Union has some £54.4 million in stocks and shares which generated an income exceeding £2 million and yet not one brass farthing was paid in taxes.
Unite is not the only union to be dodging the tax system, you also have GMB and The Community Trade Union, plus a couple of others and all of which have successfully avoided paying corporation tax on the income from their investments.
According to HM Treasury if all the Unions had paid their fair share then the bill would amount to over £2 million.
It could be argued that this is chump change compared to the likes of Google, Starbucks and Amazon but the amount is not the issue here – it’s the fact that the Unions were to one’s to stand there and admonish the Government and the corporations for their underhanded methods of avoiding tax – the pot truly is calling the kettle black.
It is little wonder why a number of Tory MPs are now accusing the Unions of hypocrisy for that is exactly what it is; after all it was Len McClusky himself who stood up and referred to Starbucks tax avoidance practices as ‘daylight robbery’.
Shortly after Len McClusky stepped down from his soap box Paul Kenny, the boss of GMB called for a Parliamentary inquiry in order to close the tax dodging loopholes.
After the tax dodging affairs were uncovered the Unions have defended their actions saying that the law currently allows them to offset ‘provident benefits’ paid to members against their profits and investments – of course these are within the same legal framework that allows corporations to avoid corporation tax.
The Unions final argument is that they differ from the corporations as they are not profit-making organisations, whose only beneficiary is the union members – I wonder how many ‘union members’ avoid paying taxes and whose salaries exceed £149,000 a year – as does Len McClusky’s.