“It is in no way tax avoidance" - quote of the day

Npower has admitted to paying zero corporation tax between 2009 and 2011.

One of Britain’s big six energy companies, Npower, has admitted to paying zero corporation tax between 2009 and 2011, as it pumped billions in to keeping “the UK's lights on"

Speaking at the energy and climate change select committee yesterday, Npower chief executive Paul Massara defended the energy giant’s tax practices, saying “it is in no way tax avoidance, and all of our business is taxable in the UK".

"Effectively we have invested £5bn in the last five years building power plants, creating jobs, creating employment and helping to keep the lights on.

"If we had not made that investment, we would not have the deductibility that we would be allowed. That is a simple accounting UK rule,” Massara told the MPs.

Npower reported a 34 per cent rise in profits to £413m last year.

The energy companies were called before the MPs in the light of worsening public trust in them, as their profits rise but household bills rocket.

Labour MP Ian Lavery said, "In the last three years, [Npower] has reported profits totalling £766m – yet today they admitted they have not paid a single penny of corporation tax over that period. 

"People who pay their taxes unquestioningly are sick and tired of seeing hugely profitable companies use every trick in the book to get out of contributing their fair share."

Another Labour MP, John Robertson, urged consumers to switch energy providers in protest, dubbing Npower “the new Starbucks”.

However, Andrew Watters, a partner in Thomas Eggar LLP, condemned this "current name and shame approach".

"It seems to be a modern version of the ducking chair where the accused is ducked until they accept guilt, or drowns (a sure sign of guilt). Some people see the new General Anti Avoidance Rule (GAAR) as the way to clarify how morality and law interact. Let us hope the GAAR Advisory Committee has at least one member called Solomon."

This story first appeared on economia

Photograph: Getty Images
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Why the Ed Stone continues to haunt Labour

The party has been fined a record £20,000 for undeclared election spending.

It’s one of the great unsolved political mysteries of our time. What really happened to the Ed Stone? Was it smashed in to little tiny pieces or is it still gathering moss in a warehouse? For those of you who have been living under a rock, or in this case a giant tablet, since last year’s general election — the Ed Stone was the much-mocked policy plinth which the former Labour leader, Ed Miliband, promised to place in the rose garden of Downing Street if he won.  

It was unveiled amid much fanfare only to spark a wave of viral humiliation for the beleaguered Miliband. The Mole remembers peering painfully through its paws and trying to ignore the smirks of its fellow rodents. Now, the spectre of the ill-fated tablet has arisen to cause the Labour Party one final humiliation.  

An investigation by the Electoral Commission has revealed that two sums totalling £7,614 were spent on the Ed Stone which were missing from the party’s election return. The report found that in total Labour failed to correctly declare 74 payments worth £123,748 of campaign spending “without a reasonable excuse”. They were also missing 33 separate invoices totalling £34,392.

The commission said Labour’s general secretary, Iain McNicol, who is also its registered treasurer, had committed two election offences and imposed a record £20,000 fine — the biggest since it began operating in 2001.

All of which has left the Labour Party red-faced once more, and the mole feeling slightly nostalgic for the days when politics was simple and the news was full of amusing images of politicians smearing bacon sandwiches across their faces and striking the odd biblical pose in front of a giant stone. Don’t forget, if the Ed Stone was standing proudly in Downing Street today, then Brexit would just be a bad dream.


I'm a mole, innit.