Sunday, February 22, 2015

A League Of Their Own

The current World Club Series games between Super League and Australian NRL sides have had an intensity to them that is missing from a large number of regular season SL games.

There's little doubt that increasing the intensity of games that English players are involved in will have a knock-on effect on the fortunes of the national team. There have been a number of ways proposed to do this, from getting more English players into the NRL to tinkering with the structure of the Super League to reduce the number of one-sided encounters.

Perhaps the most radical proposal is that of an English based team playing in the NRL itself. So how would it work?

The most obvious issue would be the logistics. A 24-hour flight to the other side of the world and back again every other week simply wouldn't be feasible. An English-based team would have to play its away fixtures in blocks, maybe say six weeks at a time as a mini tour. For Australian teams coming to the UK, the current NRL bye weeks could be used to allow them additional rest after they return. 

The second issue would then be how you build up a player pool for an English side. This is where it would need buy-in from the existing SL clubs, who would need to be convinced to give up some of their existing stars. 

A way to do this may be to run a player draft. The coach of the new side could be restricted to say three English players from each of the twelve SL clubs, plus a handful of England Academy players to pad out the squad and introduce them at an early age to the high standards required.

So how might such a squad look? Arguably, something like this:

Full back: Johnny Lomax, Zak Hardaker
Wings: Ryan Hall, Jermaine McGillivray, Ben Jones-Bishop, Tom Lineham
Centre: Kallum Watkins, Dan Sarginson, Michael Shenton, Chris Bridge
Stand off: Kevin Brown, Stefan Ratchford
Scrum half: Matty Smith, Joe Mellor
Props: Chris Hill, Andy Lynch, Scott Taylor, Kyle Amor
Hooker: James Roby, Shaun Lunt
Second row: Brett Ferres, Joe Westerman, Elliot Whitehead, Liam Farrell
Loose forward: Sean O'Loughlin, Danny Washbrook

The squad could be re-assessed each year, with any players discarded being returned to their home clubs but ensuring no more than three players come from any one club. The likes of James Graham, Mike Cooper and the Burgess twins could be pursued when their current NRL contracts expire.

Not only would it expose the best English players to NRL levels of intensity week-in, week-out, it would also enable them to build up understanding, structures and combinations when they come together for the national team.

While this is currently nothing more than a pipe dream, with the right commitment from all levels on both sides of the world, there's no reason we couldn't be watching an "England Exiles" team playing in the NRL at some point in the future.



Monday, February 09, 2015

Avoidance Of Doubt

Tax avoidance looks like being a hot topic in the upcoming election campaign, with the parties all squabbling (somewhat hypocritically in some cases - Messrs Cameron and Hodge, I'm looking at you here) over the moral high ground to condemn it as a "bad thing".

What might help the debate of course is if some of them understood what it was.

I think we're pretty much all agreed that tax evasion (basically, lying outright to reduce your tax liabilities by hiding income for example) is naughty. It's an offence that you're likely to end up in court for and potentially get a custodial sentence.

Tax avoidance however, is much trickier to define. In its simplest form, it's doing something in a particular way so you pay less tax than you would have done if you had structured it differently. It is planning your tax affairs so more money ends up in your pocket and less in the taxman's. So why has it got such a bad name, given it seems to be just simple common sense? After all, none of us wants to pay more tax than we have to, do we?

The current journey for the Outrage Express seems to have started with the multinationals like Google, Amazon and Starbucks. As is common with the majority of companies, they want to get as much profit as possible so they can pay it to their shareholders. One way to do that is to base yourself somewhere that has a low rate of Corporation Tax. Less tax paid means more money to distribute to your investors.

However, if a company has a permanent establishment in the UK such as Starbucks does, then in short it pays tax in the UK on the profits it makes in the UK. Not a good thing, if the rates of tax here are higher than where your parent company is based. So many companies employ what is known as transfer pricing.

This is where one arm of the company (e.g. Starbucks UK) will buy goods or services from another arm elsewhere (say Starbucks US). The more Starbucks UK pays for these things it buys, the lower the profit it makes and the company it buys it from (usually in a territory with a lower tax rate) makes a higher profit but pays less tax on it.

Transfer pricing is not new. It's been around as long as there have been multinationals. It's also covered by a pretty complex set of rules, and HMRC have a dedicated unit set up to inspect and police transfer pricing transactions. As long as the price Starbucks UK is paying is reasonable however, there's sod all they can do about it. Starbucks UK reduces its profits and pays less UK tax, with that tax being paid elsewhere within the worldwide group instead.

It may not be "fair". It may well be avoidance, but under existing UK and international law it is not illegal.

Neither, for that matter, is going to live somewhere with a lower income tax rate than the UK so you pay less tax on your UK income. Countries have what are known as Double Taxation Agreements which determine who gets first crack at taxing what income, based on where you live. The principle is that nobody should be taxed twice on the same income in different countries, which I think we can all agree is a pretty fair system.

So there will be occasions where someone receives significant income from a UK company but because they are not living in the UK themselves they pay very little UK tax on it. That money will be taxed elsewhere. Again, this may not seem "fair". It may well be avoidance, but under existing UK and international law it is not illegal to arrange your affairs in such a way so you pay less tax.

"What about us poor saps that don't have the money to pay fancy accountants and avoid tax?", I hear you cry. "Why should the super-rich be the ones who get to benefit while we're getting screwed to the floor by HMRC?"

Well for a start, tax avoidance is not purely the playground of the super-rich. Not by any stretch of the imagination.

Do you know someone who runs their business through a limited company, and pays themselves a small salary but then tops it up with dividends out of the profits? They're structuring their affairs in a way that minimises their tax liability. In the broadest definition of the term, they're avoiding tax. 

Ironically, I bet a large number of the MPs and journalists reminding us what a bad thing tax avoidance is have their freelance work go through a personal service company like this.

Do you put your savings in an ISA, rather than in an ordinary bank or building society savings account? You're structuring your affairs in a way that minimises your tax liability. In the broadest definition of the term, you are avoiding tax. 

Have you ever paid a tradesperson in cash, so they don't have to charge you VAT? By the broadest definition of the term, you're complicit in tax evasion - something the likes of Starbucks, Google and Amazon aren't even so low as to stoop to.

A lot is going to be said about tax avoidance over the coming months, much of it clouded in a fog of apoplexy and social responsibility. Before falling for it hook, line and sinking tax liabilities, it might be worth considering what the term actually means and who participates in it.

Wednesday, February 04, 2015

This Is A Party Satirical Broadcast

"Good evening, and welcome to this broadcast on behalf of the Open & Fair Fabulous Society party.

We here at O-FFS have noticed that there are a lot of angry people in Britain at the moment. Many of them seem to be angry about immigration. They believe the country is too full, that there are too many foreign people here and that the tolerant, pleasant British way of life is being eroded.

Frankly, we agree.

That is why O-FFS proposes a policy of enforced deportations. Hopefully, once we've sent these angry people somewhere that best suits their short tempers and bigoted ideas - like Islamic State, for example - the UK can get back to being a better place.

Then there's the economy. A lot of people seem to be upset that the money they pay in tax goes to help provide things for poor folks. So upset, in fact, that they have decided to avoid paying tax altogether just so they don't have to worry about it.

That is why O-FFS proposes that anyone caught avoiding tax have all their assets seized, be given a Santa outfit to wear and left homeless. It seemed to work out fine in the end for Dan Ackroyd in Trading Places, he even got to see Jamie Lee Curtis's tits.

Finally, we would like to address the issue of education. We believe, in the words of that wise educator and fabulous parent Miss Whitney Houston, that the children are our future. Teach them well and let them lead the way.

That is why O-FFS proposes mandatory testing in basic English, Mathematics and cognitive reasoning skills be applied to all Secretaries of State for Education. Frankly, there are too many Ministers being left behind without the basic skills to function in society. Standards have even managed to decline further after Michael Gove's departure, which is something none of us thought possible.

So remember, Britain. When you set foot into that voting booth in May to choose your new government, scan down that list of names of the ballet paper and remember...

O-FFS."