There's difference between paying 19% of your income in UK vs paying 1% of your income somewhere in the Bahamas.
Over 90% of companies pay 19% of income tax + over 20% VAT tax. They often times coexist in the markets with the corporations paying 1%.
It's not important whether it's Google or Apple or BP - they should all pay the same taxes the small/medium business owners pay. Corporations use the same infrastructure that small/medium business owners pay for. Meanwhile they say "fuck you!" to said people and pay their 1% in the Bahamas. Additionally, they get enormous competetive advantage through lower taxes while medium or small companies need to gain it through superior products.
I see this misunderstanding over VAT in this and other posts on this subject.
To be clear, VAT registered entities do not pay VAT in the fashion you imply. VAT is due on a VAT invoice. Companies usually do not do business with sources that are not VAT registered. It is a round robin scheme for VAT registered entities.
Simple example.
Month one, Google sells a tablet. Customer pays VAT. Google gives VAT income to HMRC ( once per quarter ).
Month two, Google sells a tablet. Google buys goods plus VAT. Google subtracts VAT out from VAT in. HRMC pays Google if amount is negative. Google pays HMRC if amount is positive. This month Company X paid more VAT on stationary than they collected from sales. In this case they get a refund from HMRC.
In no case does Google pay VAT. Nor does any other VAT registered entity.
The entities that pay VAT are those who are not VAT registered. Those that are VAT registered are collectors for HMRC.
Google, Starbucks, Amazon have never paid VAT. They have at most passed on VAT payments made by their customers.
Over 90% of companies pay 19% of income tax + over 20% VAT tax. They often times coexist in the markets with the corporations paying 1%.
It's not important whether it's Google or Apple or BP - they should all pay the same taxes the small/medium business owners pay. Corporations use the same infrastructure that small/medium business owners pay for. Meanwhile they say "fuck you!" to said people and pay their 1% in the Bahamas. Additionally, they get enormous competetive advantage through lower taxes while medium or small companies need to gain it through superior products.