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Peter Hargreaves: 'Why should companies have to pay tax?'

by James Phillipps on Jan 02, 2014 at 08:08

Peter Hargreaves: 'Why should companies have to pay tax?'

Peter Hargreaves has questioned why companies have to pay tax and said removing this charge would enhance the economy.

The Hargreaves Lansdown co-founder, who was awarded a CBE in the New Year’s honours list, told the Daily Mail: ‘I never understood why companies should pay tax. They don’t have a vote. If they didn’t have to pay tax they would come here in droves and employ millions of people who would pay loads of tax.’

He added that Hargreaves Lansdown paid the ‘highest rate of tax in comparison to turnover of any FTSE 100 company’ as it does not use offshore companies to circumvent the UK rules.   

6 comments so far. Why not have your say?

Keith Loudon

Jan 02, 2014 at 09:36

Congratulations on theCBE and well said on Tax K

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Neil Shillito

Jan 02, 2014 at 09:56

Agreed 100%. The Polly's of this world will always believe that 'profit' is a dirty word, but that's Grauniad readers for you. Without business we're all screwed, without tax, business can transform society for the good in ways as yet undreamt of.

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Fundador

Jan 02, 2014 at 10:40

The person on the Clapham omnibus equates 'profit' with 'profiteering', with arguably good historical and experiential justification. Unfortunately professional politicians and their apparatchiks appear to have an equally poor understanding of how business works and people are motivated: the former ever-eager to expropriate from those who do not vote of them, to give to themselves and those who do; the latter to pull every dirty trick in the book to maximise such extortion eg the latest lowering of the higher-rate tax threshhold Not content with fiscal drag, they are well on their way (after NI is taken into account) to taking more than half the income of anyone who is employed.

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Peter Barrett

Jan 02, 2014 at 16:46

Totally agree, any Chancellor with half a brain would slash Corporation Tax to a C5% and sit back and watch GB plc fly.

Trouble is greedy politicians have been brought up on high tax revenues to pay for all of their useless schemes; the biggest abuser of taxpayers' money is the public sector. This country would be run better with 50% of the current public sector employees if they had the drive and intellect of the private sector.

They will never understand that higher taxes effectively reduces the overall tax and stifles growth.

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Simon West

Jan 06, 2014 at 10:38

The argument for lower corporate taxation has merits, but no chancellor would do it. Can you imagine what the press, opposition and commentators would say? The chancellor would be labelled fiscally irresponsible as fast as you could say budget deficit.

Naive comments from PH.

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Neil Shillito

Jan 06, 2014 at 10:46

Simon is right and the loss to the Treasury would be immeasurable, but Hargreaves is right in principle.

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