Corporate Tax Contribution not Falling: Hold the Front Page

Oct 16, 2014 | Blogs

CORPORATE TAX CONTRIBUTION NOT FALLING: HOLD THE FRONT PAGE

What’s the biggest tax surprise in Plucking the geese? 

For readers, fixated by rows about corporation tax/corporate income taxes it’s this: Taxes on profits are NOT companies’ most significant tax contributions.

According to PwC the average global company pays 43.1% of its commercial profits in Tax:

  • 16.3% in taxes on labour
  • 16.1% on profit related taxes
  • 10.7% on other taxes (e.g. property taxes, stamp duty etc).

So why don’t more companies follow Rio Tinto’s and publish their total tax bill?

I don’t know. As we say in the north of England: “It beats the band”.

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