Don’t blame Amazon, it’s Corporation Tax that’s broken

Well it looks like Amazon has only paid £1.3M UK tax, based on turnover of £Sqillions. Much wringing of hands and cries of “Something should be done!”. The same goes for Google, Starbucks or any other international company doing well in the UK. But nothing is being done to solve the problem, and for various reasons depending on your economic policy outlook.

First off, it’s not true to say Amazon pays very little tax in the UK. It pays VAT and PAYE. Lots of it. What it doesn’t pay much of is corporation tax, which is the tax on profits. And if you were an international company, you wouldn’t either. For international companies, corporation tax is, for practical purposes, optional. Companies may opt to pay as much or as little as suits their purpose.

If this is news to you, it works like this: Take Starbucks, for example. They managed to make very little profit in the UK. Because of this they were paying little or no corporation tax, which may seem odd when consider their ubiquitous presence in the high street. The reason was simple: Starbucks in the UK bought its coffee from its Dutch operation and the price was so high it wiped out the profits here. In Holland they were minting it, selling coffee to the UK, but the Dutch government took a liberal view on how much tax it should pay on these profits. Basically they were allowing Starbucks to pay a cut of what should have been UK corporation tax, and trouser the rest.

If Starbucks can do this simply by finding a foreign government prepared to sell out for a share of the profits, how easy is it for a Internet company with no physical product?

Basically, corporation tax would be a farce, were it not so serious. The problem is that it’s still paid in full by our local companies, putting them at an obvious disadvantage to foreign competition. It does more damage than good.

Please generate and paste your ad code here. If left empty, the ad location will be highlighted on your blog pages with a reminder to enter your code. Mid-Post

There are two solutions:

The left-wing idea is to make more new law against tax dodging. Somehow. And if international companies don’t like it, they can take their jobs, investment, VAT payments, PAYE payments and business rates and go somewhere else (e.g. Ireland). They’ll be gutted.

Back in the real world, if you have an unenforceable tax that damages local companies the smart thing to do is abandon it. But there is a problem with this – how do you make up the revenue you’re currently collecting from UK businesses (those that remain)? The obvious answer, and one the Conservatives won’t stomach, is to raise personal income tax. This isn’t actually a problem, because foreign companies will just have to cover it to keep take-home incomes stable (or lose staff) and local companies can afford to give everyone a pay rise out of the money that would have gone in corporation tax. Levelling the playing field won’t be painless in the short term, but this no reason to avoid it.

So Labour has a busted ideological plan and the Conservatives would be annihilated if they raised taxes. Something needs to break the deadlock, because newspapers naming and shaming global companies that are simply playing by the rules we gave them is no answer. Labour banging on about alleged “tax cuts for the rich” isn’t going to help. Neither will Conservative pledges not to raise any taxes. It’s not a question of raising or reducing taxes, it’s a question of balancing them properly.

Meanwhile the Irish government is laughing at us, all the way to the bank.

 

Media in concerted racist christianphobic rant

I’ve just been listening to a DUP representative being given a hard time on Radio 4’s Today program over his religious views. How could May work with these bigots?

Actually, their views are taken direct from the Christian Bible, and somewhat watered down at that. Yet their religious convictions are considered fair game.

Compare and contrast the media treatment of politicians from other religions, which can basically be summarized as deferential respect.

So the Bible comes out strongly against abortion, homosexuality and a lot of stuff that modern society considers perfectly acceptable. The people are entitled to vote for representatives holding whatever views they like, and in Northern Ireland these views are mainstream. The Catholic church uses the same Bible, and Mohammedans have similar rules written down. The media says nothing to them.

Sadiq Khan, socialist mayor of London, happens to be a Muslim. This doesn’t appear to have bothered the people who elected him, but does seem of concern to some people. However, his religion-inspired views are unknown because they’re off-limits to the media. Personally, I doubt I’d have a problem with them although I find non-scientific views in general problematic. However, neither I nor his critics have ever even heard them. By not questioning everyone to the same standard the media leaves the public to draw conclusions that may be wholly unjustified.

But the BBC sees fit to attack representatives of one group and question their beliefs.

And spare a thought for poor Tim Farron, Christian leader of the Liberal Democrats. The media was obsessed with asking him if homosexuality was a sin. Of course it’s a sin; it says it’s a sin in the Bible. So are a lot of other things, like feeling jealous of someone. If you follow Christian teaching, everyone’s a sinner (baby), including homosexuals. So what? This line of questioning was very unfair indeed, as non-Christians would have a completely different understanding of the answer. And I’d hazard a guess that most Christians don’t understand their religion that well either.

Now I’m not against questioning religious beliefs. But it has to be ALL religious beliefs. If people wish to elect representatives who are also guided by a particular religion that’s their right; it’s how our democracy works. But unequal treatment of religions by the media cannot be allowed.

Blue Whale Challenge

Blue Whale at the Marine Life Hall, American Museum of Natural History
This is a blue whale. Nothing to do with the latest chain letter hoax.
People seem to be getting really worked up about a so-called “Blue Whale Challenge” social media game. And understandably so – it’s a game where vulnerable children are targeted and given progressive challenge, culminating in something that will kill them.

I saw this first a couple of months ago, and each time it turns up the lurid details have been embellished further. It sounds too macabre to be true. And it’s not.

About a year ago someone in Russia published an on-line article hoping to explain the high number of teenage suicides in the country, and blaming it on the Internet. Apparently a statistically significant number of teenagers belonging to one particular on-line group had died; the on-line group must therefore be to blame.

Wrong! If you have an on-line group of depressed teenagers then you are going to have a higher proportion of suicides amongst them. The writers have confused cause and effect.

However, facts never got in the way of a good lurid story and this one seems to have bounced around Russia for most of 2016, where it morphed into an evil on-line challenge game. It then jumped the language gap to English in winter 2017.

The story spreads as a cautionary tale, with the suggestion that you should pass it on to everyone you know so they can check their kids for early signs they are being targeted (specifically, cutting a picture of a whale in to their arm). In other words, a classic email urban legend. It’s only a matter of time before the neighbourhood watch people add it to their newsletters.

Update:

The Daily Mail has reported this as fact, so I must be wrong and it must be true. Or perhaps I’m right and they have nothing to back their carefully worded account. Wouldn’t be the first time…

 

 

BT Internet Mail Fail (again)

BT Internet’s email system is broken AGAIN. It rejects everything it gets as “spam” (554 Message rejected, policy (3.2.1.1) – Your message looks like SPAM or has been reported as SPAM please read…)

Having checked against blacklists, and sent perfectly innocuous test text messages to friends account, it’s definitely busted.

My advice to anyone using BT Internet for important email is to get a proper account with a proper provider (or handle your email in-house if your name is not Fred and you don’t work from a shed).

New DVLA on-line system is broken

Why can’t companies implementing government on-line systems actually get anything right? And if they must mess things up, why can’t they do it in private? The new DVLA system is broken. They ought to have tested it in-house, without launching a beta version on the public. Seriously, do they not know what a beta version is for?

My experience – I went through and entered all the details, paid, and got this:


It’s now impossible to tell whether it’s taken payment from the card or not. Okay, this appears to be an external system that’s screwed up BUT it’s not be handled properly. Basic rule of data communications – Assume the link will be corrupted and cope with it.

AO.com extended warranty – the hard sell

Our 1997 AEG Lavamat washing machine is demised. The motor finally gave up the ghost, and Electrolux (AEG) no longer stocks the spares – and even if they did, the cost of buying a new motor for such an old machine is debatable. AEG and Samsung make the machines that clean the best (according to Consumers Association tests), so another AEG it was. Unfortunately our local shop, Ruislip Appliances, is shut for the holidays so on-line shopping it was, and  AO.com had a suitable replacement that can be delivered next day. And helpfully, they agreed to take away an old dishwasher too, having paid to take away the old washing machine.

To get the latter deal, I had to order by telephone. After concluding this, the guy on the end launched in to explaining the fabulous after-care service they offered – at a price. Basically they’ll fix stuff that’s “not covered by the warranty”, such as accidental damage and bits wearing out – like bearings and door seals. Eh? Doesn’t the AEG warranty cover premature failure of non-consumable items? If a car was warranted for a year and you wheel bearings wore out just because you were driving it (reasonable distances) then you’d expect it to be fixed. Tyres are another matter; they’re consumable.

I checked the AEG warranty exclusions, and nothing like this was excluded. Basically commercial use, improper use and accidental damage. Anything else they’d fix. And their warranty lasts five years – which tells me they reckon their product won’t break down and have the data to prove it.

AO.com’s warranty excludes stuff covered by the manufacturers warranty, so that leaves very little to cover. “Ah yes, but if we can’t fix it we’ll give you a new comparable model!”. AEG would have to do the same, if it came to it. But if you read their T+C, AO.com will only do this as a last resort and they will automatically cancel your policy.

So for this little extra protection, how much did they want? Well to cover this £500 washing machine for five years it worked out at £450. Basically, where their warranty takes over from AEG’s, you’ll have already paid out the cost of a new one. If the machine was a write-off after ten years (reasonable for an AEG machine), you’d have paid for a new one twice over.

The warranties are actually called product protection plans internally, and they’re sold by AO on behalf of a third party – Domestic and General Services Ltd. They administer the plans, collect the money from the customers and pay a commission to AO

In Y/E 2014, AO.com sold £18m worth of these dubious warranties, and the value is increasing. They’ve been a bit coy about mentioning the figures in subsequent published accounts. If you’re the kind of person that’s totally unable to save up for a new appliance, it may be worth it as a saving scheme – a sort of pre-paid expensive credit option. If you pay up-front for what you buy it’s as much use as a cardboard washing machine.

I feel an OFT investigation coming on. Followed by “haveigotao.com” and similar sites.

One of the significant risks to AO Group’s future is desertion by customers (according to their Annual Report and Accounts 2015). I’m afraid the hard-sell of a dodgy product on the telephone during my first order left me questioning whether I wanted to deal with these people then, or ever again. They don’t have a price advantage over local independent dealers, and I don’t get taken for a fool by the locals either.

Other impressions of AO were good. But the washing machine hasn’t turned up yet!

No More Mr Nice Guy

Ever since I was Tech Ed on PCW (1991?), strange people have beaten a path to my door with a their domestic computer problems. Solving them was, for ten years, a good source of material for my column but that was in the 1990’s. Yet still them come. And still I help them. Why? Well I know if they took their precious data anywhere else it’d either cost more than they could afford, or they’d be ripped off and lose their data too. And I’d rather recover it before the mobile phone unlockers on the High Street made it harder.

So why is it that when you’re doing some people a favour they feel they have the right to telephone you for progress reports? Talk about looking a gift horse in the mouth,

One recent example is an elderly lady who’s PC World special laptop threw a shoe. I don’t know her, but a we had a mutual friend who asked if I’d help her out. This is not uncommon.

So along I go and take a look at it. Standard stuff – Windows is a mess and it won’t boot. After about an hour of trying, it almost boots but I opt for a System Restore as I really can’t stay any longer. “Call me in the morning and let me know what it says.”

I make it a rule NEVER to have a freebie fix in my workshop. People used to turn up and leave broken kit on my doorstep for “when I have time”. I also have to figure out what’s wrong with it the hard way. I don’t mind making the odd house-call for a worthy cause, but the kit stays with its owner. Period.

So what does she do? Call me in the morning? No! It turns out she’d get around my rule of not taking freebies back to base by leaving the laptop with our mutual friend. Then some time later she called me to see how I was getting on. Eh? First I’d heard she left it.

At the next opportunity I picked it up, against my better judgement, an spent an overnight session trying to sort it. I then had my proper work to do. And she called again. And after I’d spent all that time and effort on it came out with the immortal words “Well I don’t want to take your time up so why don’t I just take it to the [mobile phone unlockers] in the High Street. In other words, I know this is a freebee but so I’m going to use emotional blackmail to get you to hurry up.

I’m fed up of this game. I’ve seen it often enough. So I called her bluff. Let our mutual friend sort it out – I’m not touching it again with a barge pole. I’ve wasted about ten hours on it, I shall waste not a second more. Except I couldn’t help myself; someone told me she’d been unwell in hospital and I went soft.

And today she called me again. I could feel myself losing my cool, so I ended up asking her to sort out out with our friend and hung up before I blew. Ironically, her disk had been on the analyser, in place of paid work, for the last couple of days (as you may or may not know, data recovery systems can take long time to run if the disk is trashed).

And as I write this, she calls again (perfect timing) with more emotional blackmail. I apologize she caught me at a bad time earlier, but that she needed to understand… Then she gets down-right rude. I point out I’ve spent ten hours working on her machine and she might consider she’s out of order; she says “I beg your pardon…” so I just have to hang up. Her attitude is not pardonable.

I really don’t need all this. So if anyone is thinking of dumping some kit on my doorstep for a freebee, think again!

 

Enough with this “Trump Crashes Immigration Site” rubbish!

Ha Ha Ha! On Wednesday, Canada’s web site for prospective immigrants crashed due to the weight of American’s trying to escape from a USA run by Donald Trump. Really? Now other immigration sites such as New Zealand are reporting similar problems and certain some media outlets are lapping it up.

It’s a funny story, but I suspect that it’s too good for some people to check the facts.

There are two possibilities here:

  1. A load of American’s panicked suddenly.
  2. Some jokers decided a DDoS attack at this point to make it appear American’s were panicking would me funny

In the absence of any evidence to the contrary, I think option two is way more likely. People have been joking about the “move to Canada” option for months.

A-Level scrappage scheme – Tony Robinson dug up to condem it

Earlier this week AQA scrapped the A-Level in Art History, and today Archeology got the chop too. The luvvies at the BBC decided to get some expert comment about this act of cultural vandalism, and naturally turned to one of their own – Left-wing comedian and actor, (Sir) Tony Robinson. He’s keen on archeology, having made some reality TV show about it. However, he was knighted for his services to politics, having been a member of Labour’s National Executive Committee. So who better to discuss it?

Sir Tony was, unsurprisingly, keen to blather on without any balance, roundly condemning AQA for their decision. He knows a lot about education; after pre-school he went to a grammer where it scraped four ‘O’ Levels, and dropped out of ‘A’s.

Unfortunately Sir Tony couldn’t directly criticise the government as it was the exam board decided to drop it, but it didn’t stop him trying. And for balance, they dug up a professor of archaeology too – not a luvvie, but definitely an academic.

The argument made by this brace of lefties is that scrapping subjects like this means poor people going to state schools won’t have the chance to study these subjects. A view that wasn’t questioned. Well I’ll question it – if AQA has scrapped it, no one can do it.

Apparently it was also “limiting choice” to concentrate on core subjects. This stands no scrutiny. Hardly any schools offer A-levels in these subjects anyway, as no one wants to do them and even if they did, there is no one to teach them. If you have a love of a subject, go and study it yourself. Apparently, last year only 400 students took Archeology.

No one was keen to make the opposite case; that such A-Levels are a really bad idea. You can go on to study a degree in archeology without having done an A-Level in it; you just need a brain and the ability to think critically. You can get that by studying anything difficult. You don’t need to be spoon-fed a subject to “try it out”, all you need to do is go to the library and read some books.

Having A-Levels in weird subjects is actually a bad thing, in my view. People may choose to do them. In itself that’s fine, but human nature leads to many choosing the easy ride. In at least one private school I know of, most of the pupils leave with an A-Level in Scripture (Religious Studies). It’s an easy one to get and boosts the A-level tally.

So what happens when you take your A-Level in Media Studies, Archeology and Divinity to university? Do they prepare you for a degree course? Well, it might for a degree Archeology, but so would self-study and a love of the subject combined with an A-Levels in Maths and Physics. THat’s true of practically any subject at degree level.

The result of the current ridiculous situation is this: I have people trying to study for a degree in Computer Science who are unable to write a proper sentence in English. Their basic arithmetic skills are almost non-existent; and as for mathematics: forget it! And, surprise, surprise, they got on the course using A-Levels in soft subjects, so they don’t know how to study anything hard.

Bring on the A-Level scrappage scheme.

The Royal Mail is Doomed

Britain without the Royal Mail? ThRoyal Mailat’d be, well, un-British. But, like Woolworths, it’s coming to the end of its natural life after 500 years.

Realising this, it was sold out of public ownership in 2013 in the hope this would give it the flexibility to adapt and change with the times. Form most of its life it’s existed to provide communication in the form of letters. It survived the introduction of the telephone – in fact it used to run that too, messed it up and had that part of the business privatised as British Telecom in the 1981. This didn’t stop BT doing some odd things (like selling the division running these new-fangled mobile phones), but it has replaced the dwindling demand for fix-line domestic telephone calls by selling infrastructure of networking instead. BT are doing rather well at it.

Fax, and then email, has really put a dent in written communication. Who sends letters any more (apart from idiots)? However, the Internet has resulted in a massive boom in on-line commerce, and physical products still need delivery to the purchaser. Royal Mail plc needs to re-invent itself as a delivery company, and use its existing infrastructure to do it better than the start-ups who are filling the void. Unfortunately it’s doing spectacularly badly at this, whatever it’s accounts say.

Hereabouts, our two nearest Post Offices are closing, in spite of there still being a demand. There’s always a queue. The Post Office was their advantage – you could visit it to drop off a parcel and pay the postage on it at the same time. If you can’t do this, you may as well have an account with some other carrier, who’ll pick up from your premises without any fuss. Royal Mail will, if you’re big enough.

But the big problem they have is delivery. With another courier, it’s not a problem. They’ll always follow instructions and leave it across the road, where we have an agreement to take each others’ deliveries. Not a problem. If that doesn’t work they drive past a few hours later and there’s always someone around to handle it.

But Royal Mail has a “better idea”. They stuff a card into your post box telling you to collect your parcel the following day, from your local Post Office. (The one they’re just closing) And your local Post Office parcel department is only available until noon.

Whilst I like my local postman, and the people in the parcel office, the reality is that other shipping companies provide a much better service whereas they’re constrained by crazy working practices, partly fought for by their own trade union.

Unless Royal Mail can get parcel delivery right, by delivering the things to the address the sender intended, when they intended it, they’re going to be stuck with operating an almost pointless shrinking letter service, and eventually decreasing economies of scale will mean the competition can do that cheaper too.