One oil company’s profits are up 6 times! Let’s tax them? No?

Will the Treasury gather this in and spread it around to improve life for all of us? The precedents are not good. See this from Professor Richard Murphy:

 London is giving away Scotland’s oil revenues

One way the oil companies will avoid sharing it with us

Tom Mitro, who managed Chevron’s taxation and financial planning in the North Sea in the 1990s, said [a new tax] scheme could deprive the Treasury of more than £3bn in tax over the next decade:

“Overall impact on the Exchequer of [the transferable tax history scheme] could range from virtually zero to roughly [a] £3bn [plus] reduction in tax receipts over the next 10 years depending on oil prices and [the] number of asset sales and decommissioning [of North Sea platforms and pipelines],” he said in a research paper prepared for Global Witness, the non-governmental organisation.

But why would the Treasury care? 

If it assists the spin that Scotland cannot survive on its own, I suspect that’s considered a price worth paying. And I would not be at all surprised if that is part of the political motivation for this.’

http://www.taxresearch.org.uk/Blog/2018/09/03/london-is-giving-away-scotlands-oil-revenues/

 

3 thoughts on “One oil company’s profits are up 6 times! Let’s tax them? No?

  1. Alasdair Macdonald June 3, 2019 / 8:12 am

    This is why we are ‘Better Together’ – Scotland produces the oil and gas and Westminster distributes the proceeds to their chums in the City. As Kaye Adams says, ‘What’s not to like?’.

    Over 100 years ago Robert Tressell wrote the ‘Ragged Trousered Philanthropists’ and the message stil applies to a fair chunk of unionists in Scotland.

    Liked by 1 person

  2. Ludo Thierry June 3, 2019 / 4:22 pm

    The Westminster/Whitehall ruling elite write tax law which makes it apparently virtually impossible for poor old HMRC to extract even a modicum of direct taxation from the oil majors benefitting from the Scottish Sector bounty. Meanwhile, the SNP Scottish Govt. keep pushing on with the Day Job and getting a new section of Ayrshire road completed 7 months ahead of schedule!!! – from news.gov.scot – link and snippets below:

    https://news.gov.scot/news/dalry-bypass-opens-to-traffic

    £31 million road seven months early

    The new A737 Dalry Bypass has opened to traffic this morning (30 May), some seven months ahead of schedule.

    The bypass project which was expected to be completed this winter has supported 130 jobs during the height of construction and will now deliver significant benefits for road users and the local community alike.

    Opening the road to traffic this morning, Cabinet Secretary, Mr Matheson said: “The new bypass has already delivered a number of benefits during construction with 32 of the 36 sub-contracts awarded to small and medium enterprises (SMEs) – as well as providing employment for 130 people at the peak of construction. The opening of the road will deliver long term benefits including better journey time reliability for road users and public transport as well as encouraging improved economic and employment opportunities.

    The Dalry community will also enjoy improved air quality and road safety, making the town centre a more pleasant place to live and work”.

    Like

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