More taxwash from the City of London
"The study estimates the Total Tax Contribution of the FS sector in the financial year to 31 March 2009 as £61.4bn, or 12.1% of total government receipts for all taxes."
We are sorry to report that journalists up and down the country swallow and regurgitate this puffery. This is PWC's Total Tax Contribution rearing its ugly head once more. As we have remarked before, it is just bogus. Bob Mcintyre of Citizens for Tax Justice in the U.S. exposes the Total Tax Contribution concept as well as anyone can.
"PwC is trying to get corporations to pretend their tax bills are bigger than they really are, by counting not just their actual taxes, but also taxes they don't pay, such as those paid by their customers, workers, suppliers, and so forth."
And note our recent blogging, in the same vein and in the context of the SABMiller story. It is another example of "taxwash" that PWC is flogging to anyone who can afford its services.
The real figure for the City of London is the one for corporation taxes: £7.6 billion - not £61.4 billion. 1.5 percent, not 12 percent. Of, if you are being generous, you include extras like air passenger duty, the congestion charge for London, customs duties, stamp duty land tax - and a few others, at £26.1 billion, not £61.4 billion.
These institutions, which have clamoured for taxpayer bailouts and then laughed as they return to bonuses-as-usual, contribute relatively little to the government in terms of taxes, contrary to what PWC would have you believe.
Don't believe the hype.