Cuts in public services has hit “Nottingham harder than most”, says the city council.
Nottingham City Council deputy leader Graham Chapman has also revealed that in the city there are more than 700 buildings, worth at least £786 million, which are owned by companies registered abroad.
These included the NCP car park on St. James Street and more than 100 student properties, which Councillor Chapman says is “creating a double whammy funding public services, since city council receives no Council Tax from the thousands of students living in the city.”
He urged the Chancellor of the Exchequer Philip Hammond to tackle tax evasion and avoidance, and believes cuts in public services has hit “Nottingham harder than most.”
In response to the growing problem Philip Hammond introduced 18 more measures to the 100 already made since 2010 to limit tax avoidance and evasion in the Autumn Budget.
Government has forecast another £4.8 billion to be raised between now and 2022/3 and stated that £160 billion has been protected and collected since 2010.
Chancellor Hammond said in his Autumn Budget speech: “Multinational digital businesses pay billions of pounds on royalties to jurisdictions where they are not taxed, and some of these royalties relate to UK sales.”
With the measures being put into place, he added that from April 2019, “we will apply income tax to royalties relating to UK sales when those royalties are paid to a low-tax jurisdiction”.
The government hope that this will raise £200 million a year and while Mr Hammond recognises it will not “solve the problem”, he does believe it sends out a message to multinational companies.
The 18 new tax avoidance and evasion measures that the government introduced in an attempt to crack down on large multinational companies not paying a fair amount of tax:
- Withholding tax: royalties
- Tackling waste crime
- Requirement to notify HMRC of offshore structures
- Extending offshore time limits
- VAT fraud in labour provision in the construction sector
- Hidden economy – conditionally
- Profit fragmentation
- Intangible fixed assets: related party step-up schemes
- Depreciatory Transactions
- Double Taxation Relief
- Online VAT fraud: extending powers to UK businesses
- Online VAT fraud: extending powers on overseas businesses
- Online VAT fraud: VAT number display
- Online VAT fraud: split payments
- Encouraging compliance by users of digital platforms
- Faster recovery of Self-Assessment Debt
- Securing debt in insolvency: extension of security deposit legislation
- Insolvency and phoenixism risks
People still think that more can be done to stop multinational companies, while others believe that everyone in one way or another avoids tax.