http://www.dailymail.co.uk/news/article ... l?ITO=1490

Monday this week I received the latest questionnaire from HMRC, who want to know every last penny of my pension income (even though I have already informed them) so that they can squeeze me for everything they can. And yet we have another foreign-owned corporation, this time nPower, who are stating they haven't paid a penny in corporation tax for the last three years, a period when their 'profits' have gone stratspheric. This really is getting quite sick making now.

Fact is that the government is p*ssing our money up the wall on 'green' initiatives. Not Npower

A couple of years ago for example the government replaced the entire vehicle fleet with lower CO2 options, costing billions.

They have/had various 100% first year write-downs on things such as low emission cars.

http://www.hmrc.gov.uk/capital_allowances/investmentschemes.htm


In this case what happened was that Npower made a certain amount of profit, £766 million I believe, and rather than pay tax on that, they invested that money (or perhaps a little more, say £800 million) into green power, which carried with it a 100% write down.

Because they spent £800 million on equipment, which was still worth say £770m a year or two later, so that didn't affect their real profit, but in taxation terms it reduced their taxable income to zero, because they got a 100% write-down/

Had they invested, not in 'green power', but in say coal power, they would only have been able to write off 4% or 6% a year, so only £32 million, instead of £800 million, and would have paid plenty of tax.

In my view the government got exactly what it wanted - that power companies would invest their profits into green power (wind) rather than coal.

Having gone out of its way to create this incentive, they (the Government) are being unreasonable, and anti-business to complain about it.

Without these incentives, the cost/benefit would probably have swung towards coal instead.

There is absolutely nothing unethical or untoward about this form of tax avoidance. Unlike companies that funnel revenue through lower-tax jurisdictions for example, which has no purpose other than tax avoidance, there was a legitimate goal that the government believes is in the national interest here - producing eco-power. If they didn't want them to invest in this area, they shouldn't have offered the incentive. This is not the time or place to debate the rights and wrongs of renewables but it is easy to see why NPower have done this. The Government has more or less printed a licence allowing them to get away with it.

At some point renewables will presumably be a cost benefit for the economy (on days it is windy that is)

Lots of other industries also enjoy generous tax breaks, such as the film industry, and it's not a scandal at all that people use them, in fact something would be wrong if they didn't.

Anyway only the poor pay taxes, for everyone else it's a voluntary contribution.

Geezer, I have to profoundly disagree with you where you say “There is absolutely nothing unethical or untoward about this form of tax avoidance.” The whole green agenda is based on a pack of deliberate lies. If that isn't unethical then I don't what is. I agree the government is behind this unethical tax favour given to so-called 'green investment', so is the EU, and the UN. And because the Government's tax avoidance scheme is based on a pack of green agenda lies, it doesn't excuse corporates from engaging in even more unethical behaviour by making huge financial gains out of political lies – especially when those gains are directly adding to the tax burden of ordinary people, and threatening the health and well-being of the most vulnerable members of society. We are seeing unadulterated greed on a monumental scale.

If we ordinary folk knowingly, or unknowingly are in receipt of stolen goods then we are liable to be on a charge for the crime of receiving. nPower are knowingly receiving stolen money via the green agenda – but because they are a corporation they are free to go unchallenged.

HMRC are chasing me for £7 of unpaid Income Tax for the year of 2011/2012. In fact HMRC owe me £8 in over-paid Income Tax for the same year. This process must have cost HMRC (actually the tax-payer) a large sum in wasted time and letters – certainly far more than the £8 I am owed. And all the while Government, and foreign owned corporates, are free to engage in lies, greed, theft, and for some, a very real threat to life. nPower are demonstrating an abdication of all moral and ethical responsibility.

They wrote down their profit against Capital allowances. This has been a tax break for time immemorial and creates the incentive for firms to re-invest.
A freight company needs trucks, they can do exactly the same.
A machine company needs new plant, them too.

As a small businessman I have taken advantage of this scheme to reduce my personal tax bill (I don't pay corporation tax).

If I was a shareholder of NPower I would be expecting them to do this, if they didn't and ponies up a couple of dozen Million to the exchequer in Corporation tax then I would be asking series questions.

If I were a shareholder of nPower, which I wouldn't dream of being, then I would not expect the corporation to take advantage of immoral gains. However this tax break is dressed up, for any organisation benefiting from the 'green' anti-CO2 lie effectively declares itself as unethical, immoral, and indefensible because it is benefiting from receiving money that has been gained by theft, which amounts to fraud.

Likening a transport company that needs conventional trucks that can be set against tax is a completely different situation. However, any freight company that decides to benefit from 'green' incentives that are underwritten by the general taxpayer would declare itself equally immoral as nPower are.

nPower's failure to pay full corporation tax because of a deceitful and dishonest 'green' subsidy is in the same league as immoral and fraudulent bankers. Which is a fundamental problem with the whole of modern economics and politics – they are rotten to the core. It really is no surprise that the global economy is in melt-down when ethics and morality have been discarded in favour of relentless unadulterated greed backed-up with lies and deceit.

It was the government which set up so called 'green energy' for tax breaks so blame for the problem (if there is one) should be pointed towards them.

As I see it there is nothing wrong with the capital allowances rule as i explained earlier it gives firms a tax break to re-invest. This assists in safeguarding employment and provides for an additional tax base further down the line.

Of course the issue here is the green subsidy and whether this is a good or bad thing.

The answer to that lies with each individuals political beliefs but what I do find strange is the number of politicians with financial interests in green energy.
Maybe if this wasn't the case then there wouldn't be such a strong subsidy which private enterprise would do their level best to take advantage from.

We shouldn't be arguing amongst ourselves on whether it is wrong or right to take advantage of perfectly legal tax breaks that have an ongoing purpose as that is what they the Government want us to do.. They pointed the finger at all the firms trying to suggest taking advantage of tax breaks was wrong when it was they who created the circumstances in which they can be claimed.

But then all the time we are doing that the focus is not on what really matters......

http://www.reuters.com/article/2013/04/16/us-climate-slowdown-idUSBRE93F0AJ20130416



It is the science behind the reasons for the tax breaks which is flawed, not the tax breaks themselves.......

sounds like a great wheeze.i borrow money from my mum
who charges me interest which i then offset against my tax.

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