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Tag Archives: Lefty hypocrites

Frankie Boyle leaps to Vodafone’s defence

Remember the furore a few weeks ago, when Vodafone posted healthy profits but paid – gasp – no UK corporation tax?

Well, that left wing comedian firebrand Frankie Boyle – of all people – has come to their defence.

Granted, he probably wouldn’t see it that way.

However, let’s suppose that Vodafone’s CEO tweeted the following about the reasons for the zero tax bill:

We incurred the capital expenditure for reasons separate from tax and our accountants applied for tax relief on this.

You see, the main reason for Vodafone paying no corporation tax is that they had set a significant amount of capital expenditure against their taxable profits, by way of capital allowances and related reliefs*. Unless Frankie really thinks that all that investment in new tech and so on was just an elaborate tax dodge, then it is clear that Vodafone’s tax bill was reduced entirely legally, indeed using provisions set in place by Parliament.

Vodafone could have chosen not to claim the allowances, but why should they do that?

It’s a bit like Entrepreneurs’ Relief, which reduces the capital gains tax rate to 10% on distributions of reserves on the dissolution of a qualifying company – such as Frankie’s.

Frankie could have chosen to distribute those remaining reserves in his company as a dividend (paying around 36% income tax net) or even as salary (that’s just under 60%, including employer’s NI). But why should he do that?

Oh yes you do, mate. Go back a few years and you might remember the venture capitalists who pointed out that they were paying tax at a lower rate than the office cleaners. Yes, that was through treating income as capital (as you have) and using Business Asset Taper Relief – a forerunner to today’s Entrepreneurs’ Relief.**

So I applaud his use of legal means to reduce his tax bill – starve the beast and all that. The problem, for him, is that he is now clearly a hypocritical b-tard. Therefore I trust we’ll hear no more nonsense from him about tax dodging (blurring the distinction, as he and his fellow travellers do, between tax avoidance and evasion).

Pigs have evolved into a rather aerodynamic shape these days, haven’t they?

* See Christie for his usual excellent precis of the situation and demolition of yet another bunch of ‘financial’ ‘journalists’.