Tax & admin Rebecca Smith · 13 November 2015
Corbynomics creator criticises Crickhowell plan to move whole town offshore
The independent traders from the Welsh town of Crickhowell have been criticised for being irresponsible? by Corbynomics creator Richard Murphy, astheir bid to move the whole town offshore hit the headlines. The businesses grouped together to protest the way multinational corporations have been able to make use of offshore loopholes to pay little to no corporation tax, with their efforts including a DIY tax plan being documented by a BBC crew. Economist Murphy however, who has been credited with being the creator of corbynomics?, said the campaign was unwise. This is an irresponsible stunt which actually places those involved at risk of an unforeseen tax bill and penalties from HMRC? he said. Murphy’s plan to collect an estimated 120bn lost each year because of tax avoidance, evasion and uncollected tax debt, was used by Labour leader Jeremy Corbyn throughout his leadership campaign. The lack of a level playing field meant multinational companies are able to operate in a way which small individual businesses cannot, Murphy warned. It is reckless and counterproductive. We don’t want a lowest common denominator race to the bottom with more people refusing to pay tax. There are better ways of ensuring that multinational companies pay more tax. Murphy added that he hoped the BBC had indemnified everyone involved because they could face an unforeseen tax bill at the end of it. The results of the campaign are being filmed for a BBC Two documentarythe Town That Went Offshore. Crickhowell traders however, hope the protest will draw attention to the plight of small firms, and force the Treasury to bring about measures that will actually ensure a level playing field between large companies and small businesses. The town has received numerous messages across social media, with campaigners in other towns saying they plan to follow suit. HMRC said the Crickhowell traders had met with the director general of business tax, James Harra, in order to discuss the chancellor’s latest crackdown on loopholes.
ABOUT THE EXPERTRebecca Smith
Rebecca is a reporter for Business Advice. Prior to this, she worked with a range of tech, advertising, media and digital clients at Propeller PR and did freelance work for The Telegraph.