Tony Blair's tax mystery. It's the socialist way.

[T 42 10]

The above is a little misleading in that although Tony Blair's company had an income of £12 million, the company had costs of running the business of £11 million, leaving a profit of £1 million on which £315,000 tax was paid.

 

But as it is stated £11 million in running costs for a business looking after his finances is a little high and those involved seem reluctant to clarify things.

I have no doubt that everything is legal, but that is hardly the point is it?

When his government were pointing the finger at tax exiles and non doms Blair was doing everything he could to avoid paying tax himself. It isn't illegal, but neither is tax avoidance by anyone else they were pointing at.

[MrSmith 10]

The above is a little misleading in that although Tony Blair's company had an income of £12 million, the company had costs of running the business of £11 million, leaving a profit of £1 million on which £315,000 tax was paid.

 

Do you not find the £11million as administrative expenses a bit.

£11million as ‘administrative expenses’ – a ‘surprisingly’ high figure, according to one accountant.

I know he was PM so used to wasting money, but even so, spending that amount on admin does appear a tad high.

[truman 10]

Do you not find the £11million as administrative expenses a bit.

 

I know he was PM so used to wasting money, but even so, spending that amount on admin does appear a tad high.

 

I think we've found something we agree on

[jez449 10]

Not a very efficient business is it? 8% profit? The Dragons would laugh him out There's maybe some very smart accounting going on..or some very big expenses...

 

Probably abit of both!

[jez449 10]

But as it is stated £11 million in running costs for a business looking after his finances is a little high and those involved seem reluctant to clarify things.

I have no doubt that everything is legal, but that is hardly the point is it?

When his government were pointing the finger at tax exiles and non doms Blair was doing everything he could to avoid paying tax himself. It isn't illegal, but neither is tax avoidance by anyone else they were pointing at.

 

Agree it is probably all above board but is it ethical.

 

The post I made was pointing out that the tax paid was £315,000 on a profit of £1 million (ie 30%).

 

Some posters were thinking that tax of £315,000 had been paid on profits of £12 million, ie 3%.

 

Now that would be questionable.

[jez449 10]

Do you not find the £11million as administrative expenses a bit.

 

Yes

 

I know he was PM so used to wasting money, but even so, spending that amount on admin does appear a tad high.[/QUOTE]

 

These people know how to waste the taxpayers money, they tend to be abit more selective when its their own money. Its a shame that a breakdown is not available.

[T 42 10]

Agree it is probably all above board but is it ethical.

 

The post I made was pointing out that the tax paid was £315,000 on a profit of £1 million (ie 30%).

 

Some posters were thinking that tax of £315,000 had been paid on profits of £12 million, ie 3%.

 

Now that would be questionable.

 

The amount of tax you pay depends on the numbers you enter on your tax return. So the tax was always going to be £315,000 by virtue of the tiny profit declared. What hasn't been explained is where the rest went. Perhaps we need the the tax man to slip around to one of his various £5 million mansions and ask him.

[MrSmith 10]

Agree it is probably all above board but is it ethical.

 

The post I made was pointing out that the tax paid was £315,000 on a profit of £1 million (ie 30%).

 

Some posters were thinking that tax of £315,000 had been paid on profits of £12 million, ie 3%.

 

Now that would be questionable.

 

The £12 million could well be profit but not declared profit, it would depend what the expenses were that reduced it by £11 million and if they were questionable.

[Cyclone 10]

I think there were about £7million of the expenses bill that couldn't be readily explained.

[jez449 10]

The £12 million could well be profit but not declared profit, it would depend what the expenses were that reduced it by £11 million and if they were questionable.

 

Think there are two parts to this discussion:

 

1 - Is the tax paid of £315,000 on profits of £1 million reasonable?

 

Large companies pay tax at around 30% so the tax paid appears to be correct.

 

2 - Are the admin expenses of £11 million reasonable for a company with 26 employees?

 

The accounts state that:

 

- £2.285 million went on staff costs

 

- £550,000 went on office rent

 

- £300,000 on office furniture and equipment

 

This leaves approx £8 million unaccounted for.

 

Suppose he could have taken John Prescot and Eric Pickles out for a couple of meals.

[caparo 10]

The £12 million could well be profit but not declared profit, it would depend what the expenses were that reduced it by £11 million and if they were questionable.

 

I'm not 100% certain that 70 foot luxury yachts are allowable particularly when motors are limited to around £15K and have to be depreciated over several years.

 

I bet when he pegs out there won't be any inheritance tax to pay.

[green 10]

I wonder how many tax havens ole Tony uses?