Unpicking the City of London’s tax contribution

Prem Sikka

The City of London publishes regular reports showing the sector’s “contribution” to the British economy, in terms of taxes paid and jobs created.  The Finance Curse analysis shows these numbers to be useless — for the simple fact that they show a gross contribution, airbrushing out the costs, instead of what policy-makers need: the net contribution, after the costs of oversized have been taken into account.

The first systematic attempt to put a number to the net figure was by Andrew Baker, Gerald Epstein and Juan Montecino. They came up with a negative number: oversized finance has cost the UK economy a cumulative $4.3 trillion over 20 years.

And there’s another question here: are the gross figures put forward by the City of London even correct? 

A new article by Prof. Prem Sikka shows that the published tax benefits issued by the City of London are enormous overstatements. Read his article here. He begins:

“The sector claims to have contributed 11% of the UK tax revenues compared to 13.9% in 2007. The report was prepared by PricewaterhouseCoopers (PwC), the firm that audited BHS and was also carpeted by the Public Accounts Committee for promoting tax avoidance “on an industrial scale”.

And the article lays out the several reasons how and why the tax numbers are wildly overstated.

For more details, also see my earlier paper co-authored with John Christensen and Duncan Wigan of Copenhagen Business School.

Postscript: in a tangentially related matter, Sikka has just published a set of proposals for reforming the auditing industry, and particularly removing their conflicts of interest.

127 thoughts on “Unpicking the City of London’s tax contribution

  1. Orville Stolarik

    After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.

    Reply
  2. Winford Kone

    This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want?HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!

    Reply
  3. George Threlfall

    Hi, just came across this website. Its a great illustration of how small to medium sized companies can use Awards based advertising to get their companies ranked on the 1st page of Google. Awards programmes offer many benefits to winners. After all they bring exposure and you can share the news of your win with your employees, clients, industry peers and target market as much as you like. Additonally awards offer prestige and status, giving potential clients peace of mind that they are working with a reputable company. There are many types of awards programmes, including those that host awards ceremonies (and you pay per table), organisations that award only their members (and you pay for membership and advertising) and those that provide marketing materials. The latter is a great choice for those who are wary about the benefits of using corporate awards programmes because generally nominees and winners do not have to pay a penny to be considered. Winners often receives online exposure, usually with a reach much greater than their own marketing efforts can offer. Other free benefits can include the use of an announcement. Most participants have the option to purchase additional marketing materials to further promote their win, if they wish to, for use in social media campaigns, on their own website, email marketing campaigns or in customer newsletters.

    Reply
  4. Clemencia Slonski

    I discovered your blog website on the search engines and check several of your early posts. Continue to keep within the very good operate. I recently extra your RSS feed to my MSN News Reader. Looking for toward reading much more within you at a later date!…

    Reply
  5. Verlene

    Thank you for the good writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how can we communicate?

    Reply
  6. BigInternship

    my location for the Nike BigInternships is at mesquite HIGH SCHOOL which is still in session and this kid comes up to me and goes “wait aren’t you in my class” ////:

    Reply
  7. viagra

    Thank you for the auspicious writeup. It actually used to be
    a entertainment account it. Look complex to far introduced agreeable from you!
    By the way, how can we be in contact?
    viagra

    Reply
  8. Isa

    After reading your blog post, I browsed your website a bit and noticed you aren’t ranking nearly as well in Google as you could be. I possess a handful of blogs myself, and I think you should take a look at “seowebsitetrafficnettools”, just google it. You’ll find it’s a very lovely wordpress SEO tools that can bring you a lot more visitors and improve your ranking. Keep up the quality posts

    Reply
  9. vitroceramicas fagor automation

    Podrás cambiar tu moneda a Euros al cambio del día dentro del departamento de Servicio al Cliente ubicado en nuestros centros. Cuenta con la atención personalizada de nuestros profesionales y con un servicio de encargos, pedidos, cortes y preparaciones especiales. Retiraremos tus muebles, colchones y electrodomésticos viejos, previo aviso, sustituyéndolos por los nuevos.

    Reply
  10. Peter Strawberry

    Возможность горести превратить в радости – значит уметь жить. ( convert adif to cabrillo , i2000 travel vacations , hotel capri san francisco ) Squeek when my sol drivesГодных в добрые друзья мало, а для того, кто отобрать не умеет, – еще меньше. ( usair mastercard barclays bank , urban forex course , flapless lasik eye surgery ) Will i get fender rub from these offsetsЕсть люди со свойством той посуды, что впитывает запах первой налитой в нее жидкости, – что благовонной, что вонючей. ( fx caprara outdoor , nys diy forms , best foreign exchange toronto ) How to Remove wheels studs

    Reply
  11. Kieth Burg

    Hello, you used to write wonderful, but the last several posts have been kinda boring¡K I miss your great writings. Past several posts are just a bit out of track! come on!

    Reply
  12. Korey Keneipp

    I’ve just started at trial pack viagra cialis levitra The move comes three months after Cameron and TylerWinklevoss, the twin brothers famous for their legal battle withMark Zuckerberg over the founding of Facebook, filed plans tolaunch the Winklevoss Bitcoin Trust, an exchange-traded product that would allow investors to trade the digital currency likestocks.

    Reply
  13. Emmanuel Love

    Hey, how’s it going?

    I want to pass along some very important news that everyone needs to hear!

    In December of 2017, Donald Trump made history by recognizing Jerusalem as the captial of Israel. Why is this big news? Because by this the Jewish people of Israel are now able to press forward in bringing about the Third Temple prophesied in the Bible.

    The Jewish people deny Jesus as their Messiah and have stated that their Messiah has been identified and is waiting to be revealed. They say this man will rule the world under a one world religion called “spiritualism”.

    They even printed a coin to raise money for the Temple with Donald Trumps face on the front and with king Cyrus'(who built the second Temple) behind him. On the back of the coin is an image of the third Temple.

    The Bible says this false Messiah who seats himself in the Third Temple will be thee antichrist that will bring about the Great Tribulation, though the Jewish people believe he will bring about world peace. It will be a false peace for a period of time. You can watch interviews of Jewish Rabbi’s in Israel speaking of these things. They have their plans set in place. It is only years away!

    More importantly, the power that runs the world wants to put a RFID microchip in our body making us total slaves to them. This chip matches perfectly with the Mark of the Beast in the Bible, more specifically Revelation 13:16-18:

    He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.

    Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666.

    Referring to the last days, this could only be speaking of a cashless society, which we have yet to see, but are heading towards. Otherwise, we could still buy or sell without the mark amongst others if physical money was still currency. RFID microchip implant technology will be the future of a one world cashless society containing digital currency. It will be implanted in the right-hand or the forehead, and we cannot buy or sell without it! We must grow strong in Jesus. AT ALL COSTS, DO NOT TAKE IT!

    Then a third angel followed them, saying with a loud voice, “If anyone worships the beast and his image, and receives his mark on his forehead or on his hand, he himself shall also drink of the wine of the wrath of God, which is poured out full strength into the cup of His indignation. He shall be tormented with fire and brimstone in the presence of the holy angels and in the presence of the Lamb. And the smoke of their torment ascends forever and ever; and they have no rest day or night, who worship the beast and his image, and whoever receives the mark of his name.” (Revelation 14:9-11).

    People have been saying the end is coming for many years, but we need two key things. One, the Third Temple, and two, the technology for a cashless society to fulfill the prophecy of the Mark of the Beast.

    VISIT http://WWW.BIBLEFREEDOM.COM TO SEE PROOF FOR THESE THINGS AND MUCH MORE! TELL YOUR FRIENDS AND FAMILY. SHARE THIS MESSAGE!

    Reply
  14. Cheryle Melder

    “I’m not positive where you are getting your information, but good topic. I must spend a while learning much more or figuring out more. Thanks for fantastic info I used to be searching for this info for my mission.”

    Reply
  15. DMC5

    Your style is unique compared to other folks I’ve read stuff from. Thank you for posting when you’ve got the opportunity, Guess I’ll just book mark this blog.

    Reply
  16. DMC5

    Hello! I just wish to offer you a huge thumbs up for the excellent information you have got here on this post. I am returning to your web site for more soon.

    Reply
  17. DMC5

    Next time I read a blog, I hope that it does not disappoint me as much as this one. I mean, Yes, it was my choice to read, but I actually thought you’d have something useful to say. All I hear is a bunch of crying about something that you could fix if you weren’t too busy searching for attention.

    Reply
  18. Apex Legends

    Spot on with this write-up, I actually feel this amazing site needs a great deal more attention. I’ll probably be back again to see more, thanks for the information!

    Reply
  19. family guy hack - family guy hack mac

    The things i have seen in terms of laptop memory is that often there are specs such as SDRAM, DDR and the like, that must match up the specifications of the mother board. If the pc’s motherboard is reasonably current while there are no os issues, improving the storage space literally requires under an hour or so. It’s one of several easiest pc upgrade procedures one can think about. Thanks for giving your ideas.

    Reply
  20. componentes de lavadoras y

    Las averías defectos ocultos que, eventualmente, puedan aparecer durante la confección del presupuesto durante la reparación del aparato deben comunicarse al usuario a la mayor brevedad posible. Al dejar el aparato en el SAT para valorarlo arreglarlo, nos deben dar un resguardo con la descripción técnica del aparato, fecha de recepción, plazo previsto de entrega del presupuesto del aparato ya reparado, etc.

    Reply
  21. Patricia Barrett

    SPECIAL LOAN OFFER!!!
    Are You Tired of Seeking Loans and Mortgages? Have You Been Turned Down Constantly By Your Banks and Other Financial Institutions? Here is an opportunity of getting a loan from a reliable source. We Offer Loans from a Minimum amount of $5000 to $5,000,000.00 Maximum. We give out loans to all categories of Business Owners and Startup, Personal Interest, Real Estate and Mortgages, Companies, Industries etc. we give out loans at very cheap and moderate interest rates with a Well structured repayment schedule. We are trusted, reliable and dynamic. Serious and interested individual should contact
    Email at: georgeneggaguaranteeloan@yahoo.com
    Tel contact: +1(507) 215 8801
    https://georgenegga.wixsite.com/guaranteeloan/contact

    Reply
  22. payday loans

    Hi admin ,
    These are generally routine monthly expenses, requiring only a small amount towards their disbursal. Thus, regular loans, where large amounts are exchanged, may not be appropriate. Moreover, regular loans that take several weeks to be approved and sanctioned may not be appropriate for these expenses because of the urgency involved.
    Thanks.

    Reply
  23. 7wf7kkm

    payday loan online usa When you secure a payday loan, bear in mind that you’re basically not obtaining an income for the next pay period. You’re mosting likely to need to consider how to reside on what you get until the complying with income, considering that you’ll be using much of your following one to pay for this lending. A lot of individuals do not keep in mind that and also end up getting more payday advance loans and also tunneling themselves into debt. payday loan

    Reply
  24. minecraft

    Magnificent goods from you, man. I’ve understand your stuff previous to and you’re just
    too wonderful. I actually like what you’ve acquired here, certainly like what you are stating and the way in which
    you say it. You make it enjoyable and you still take care of to keep it sensible.

    I cant wait to read much more from you. This is actually a wonderful web
    site.

    Reply
  25. Emma Love

    Hey, how’s it going?

    I want to pass along some very important news that everyone needs to hear!

    In December of 2017, Donald Trump made history by recognizing Jerusalem as the captial of Israel. Why is this big news? Because by this the Jewish people of Israel are now able to press forward in bringing about the Third Temple prophesied in the Bible.

    The Jewish people deny Jesus as their Messiah and have stated that their Messiah has been identified and is waiting to be revealed. They say this man will rule the world under a one world religion called “spiritualism”.

    They even printed a coin to raise money for the Temple with Donald Trumps face on the front and with king Cyrus'(who built the second Temple) behind him. On the back of the coin is an image of the third Temple.

    The Bible says this false Messiah who seats himself in the Third Temple will be thee antichrist that will bring about the Great Tribulation, though the Jewish people believe he will bring about world peace. It will be a false peace for a period of time. You can watch interviews of Jewish Rabbi’s in Israel speaking of these things. They have their plans set in place. It is only years away!

    More importantly, the power that runs the world wants to put a RFID microchip in our body making us total slaves to them. This chip matches perfectly with the Mark of the Beast in the Bible, more specifically Revelation 13:16-18:

    He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.

    Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666.

    Referring to the last days, this could only be speaking of a cashless society, which we have yet to see, but are heading towards. Otherwise, we could still buy or sell without the mark amongst others if physical money was still currency. RFID microchip implant technology will be the future of a one world cashless society containing digital currency. It will be implanted in the right-hand or the forehead, and we cannot buy or sell without it! We must grow strong in Jesus. AT ALL COSTS, DO NOT TAKE IT!

    Then a third angel followed them, saying with a loud voice, “If anyone worships the beast and his image, and receives his mark on his forehead or on his hand, he himself shall also drink of the wine of the wrath of God, which is poured out full strength into the cup of His indignation. He shall be tormented with fire and brimstone in the presence of the holy angels and in the presence of the Lamb. And the smoke of their torment ascends forever and ever; and they have no rest day or night, who worship the beast and his image, and whoever receives the mark of his name.” (Revelation 14:9-11).

    People have been saying the end is coming for many years, but we need two key things. One, the Third Temple, and two, the technology for a cashless society to fulfill the prophecy of the Mark of the Beast.

    VISIT http://WWW.BIBLEFREEDOM.COM TO SEE PROOF FOR THESE THINGS AND MUCH MORE! TELL YOUR FRIENDS AND FAMILY. SHARE THIS MESSAGE!

    Reply
  26. Coleman Helfritz

    Thank you a lot for sharing this with all folks you really understand what you are talking approximately! Bookmarked. Please also visit my website =). We may have a link exchange agreement among us!

    Reply
  27. agentie seo

    Optimizarea SEO facuta pe cont propriu poate fi o optiune, mai ales daca ai un website simplu, pe care abia l-ai lansat. Poti apela la resursele online pentru a invata fundamentele SEO de unul singur si a le aplica in optimizarea continutului site-ului dupa anumite cuvinte cheie, precum si pentru a-ti construi un profil de backlinkuri. De altfel, este si cea mai accesibila optiune din punct de vedere financiar.

    Reply
  28. minecraft

    It’s a pity you don’t have a donate button! I’d most certainly donate to this brilliant blog!
    I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account.

    I look forward to fresh updates and will share this website with
    my Facebook group. Chat soon!

    Reply
  29. tinyurl.com

    Howdy, i read your blog occasionally and i own a similar one and i was just
    curious if you get a lot of spam remarks? If so how do
    you prevent it, any plugin or anything you can recommend? I get so much lately it’s driving me
    crazy so any support is very much appreciated.

    Reply
  30. Lavette Schmutz

    I haven’t checked in here for some time as I thought it was getting boring, but the last several posts are good quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

    Reply
  31. Teressa Rasche

    Yeezy Shoeshttp://www.yeezy.com.co/ Yeezyshttp://www.yeezys.us.com/ Yeezy Supplyhttp://www.yeezysupply.us.com/ Yeezy Sneakershttp://www.yeezy-shoes.us.com/ Yeezy Boost 350 V2http://www.yeezy-boost350.com/ Yeezy Boosthttp://www.yeezyboost350.us.com/ Yeezy Blue Tinthttp://www.yeezybluetint.com/ Yeezy 500http://www.yeezy500utilityblack.com/ Yeezy 500 Utility Blackhttp://www.yeezy500utilityblack.us/ Nike VaporMaxhttp://www.vapor-max.org.uk/ Salomonhttp://www.salomon-shoes.org.uk/ Salomonhttp://www.salomons.me.uk/ Salomon UKhttp://www.salomonspeedcross4.org.uk/ Off White Air Jordan 1http://www.offwhitejordan1.com/ Vapor Maxhttp://www.nikevapormax.org.uk/ Nike Element 87http://www.nikereactelement87.us.com/ Nike Element 87http://www.nikereactelement87.us/ Nike Air Vapormax Plushttp://www.nikeplus.us/ Nike Outlet Onlinehttp://www.nike–outlet.us/ Nike Outlethttp://www.nikeoutletstoreonlineshopping.us/ Nike Outlethttp://www.nikeoutletonlineshopping.us/ Nike NBA Jerseyshttp://www.nikenbajerseys.us/ Air Max Nikehttp://www.nikeairmax.us/ Nike Air Max 2017http://www.max2017.us/ Jordan Shoeshttp://www.jordan-com.com/ Jordan 11 Concordhttp://www.jordan11-concord.com/ Kanye West Yeezys Boost Shoeshttp://www.cs7boots1.com/ Cheap NBA Jerseys From Chinahttp://www.cheapnba-jerseys.us/ Birkenstock Sandals UKhttp://www.birkenstocksandalsuk.me.uk/ Basketball Jerseyhttp://www.basketball-jersey.us/ Balenciagahttp://www.balenciaga.me.uk/ Balenciagahttp://www.balenciagauk.org.uk/ Balenciaga UKhttp://www.balenciagatriples.org.uk/ Balenciaga UKhttp://www.birkenstocks.me.uk/ Balenciagahttp://www.balenciagatrainers.org.uk/ Nike Air Maxhttp://www.airmax270.org.uk/ Adidas Yeezyshttp://www.adidasyeezyshoes.org.uk/ Yeezy Shoeshttp://www.adidasyeezyshoes.org.uk/

    Reply
  32. minecraft

    Link exchange is nothing else however it is
    simply placing the other person’s blog link on your
    page at appropriate place and other person will also do same in favor of
    you.

    Reply
  33. minecraft

    Having read this I believed it was extremely informative.
    I appreciate you spending some time and effort to put this
    article together. I once again find myself spending
    way too much time both reading and commenting. But so what, it was still worth it!

    Reply
  34. Keira Holub

    I was curious if you ever thought of changing the structure of your site?Its very well written; I love what youve got to say. But maybe you could a little morein the way of content so people could connect withit better. Youve got an awful lot of text for only having one or 2 images.Maybe you could space it out better?

    Reply
  35. Lula

    After reading your blog post, I browsed your website a bit and noticed you aren’t ranking nearly as well in Google as you could be. I possess a handful of blogs myself, and I think you should take a look at “seowebsitetrafficnettools”, just google it. You’ll find it’s a very lovely SEO tool that can bring you a lot more visitors and improve your ranking. They have more than 30+ tools only 20$. Very cheap right? Keep up the quality posts

    Reply
  36. tinyurl.com

    Please let me know if you’re looking for a article author for your blog.
    You have some really good posts and I think I would be a good asset.
    If you ever want to take some of the load off, I’d absolutely love to write
    some articles for your blog in exchange for a link back to mine.
    Please shoot me an email if interested. Kudos!

    Reply
  37. Eliana Zlaten

    Free Gift Cards – Get a Free Gift Card for those services : ( Google Play, Xbox, Steam, Skype, Windows, Ebay, Netflix, Microsoft, PlayStation, iTunes, PayPal, Amazon, Facebook, Spotify ).Getting a FREE Gift Card online is a whole lot easier than putting your name in a raffle to win a car at the mall.A free gift card or a raffle drawing are both set up with one goal in mind – to collect contact information which will be used for marketing purposes.Unlike a mall car raffle, which you realistically have no chance of winning – out of several thousand submissions only one will win the car – with the online giftcard promotion you have every chance to get the card of your choice, as long as you complete the participation requirements.WHAT!? You mean I can’t just get it for FREE? Let’s be realistic, nothing is really free.You have to exchange something of value to the card provider to receive the giftcard.What you will be exchanging is your contact information and your ability to successfully complete sponsor offers.Of course, the higher the dollar value of the card the more participation requirements you will need to fulfill. For a $100 card you may just have to complete 3 sponsor offers while for a $1,500 card you may need to complete 14+ sponsor offers. On the positive side, as long as you complete the participation requirements the giftcard is yours!Here’s how to do it successfully. Type in FREE Gift Card (free giftcard, free gift card) in your browser.Select the ones you like (Wal Mart, Target, Costco, Ikea, REI, Victoria’s Secret, Travel, grocery, food, restaurant, gas, the possibilities are almost endless) scroll down to Terms and Conditions (T&C), open T&C and read thoroughly. To be successful you must fully understand what is meant by “participation requirements.”Even though it’s advertised as “FREE” you will need to do some work. Each program will ask you to register with valid information, complete some kind of survey, and complete at least X Silver, X Gold and X Platinum sponsor offers.Keep in mind that each of these offers has their own completion requirements – be sure to follow them. Sounds a little complicated – not really. Just like in life, you just have to do it step-by-step. Once you do it several times it does become easier.How to be successful and get your card:1.—Understand the participation requirements.2.—Complete program participation requirements, and 3.—Do not cancel any program before completing program requirements.If a sponsor offer has a shipping offer; handling charge or first month payment – not a problem. What you spend will be a very small amount of the $1,000 (or $1,500 or $500 or…) giftcard which you’ll receive.Click on the link and : Get a Free Gift Card

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *