Gestures, not Principles Exhibited at Co-op | Co-op Group

“Pprinciple [are] It’s more valuable than profit, “says the Co-op Group’s value description heading, but collaborators forget to mention small print. This pride doesn’t seem to fit the principle that food retailers should pay business fees when they open and trade is active.

In the absence of an asterisk, chairman Allan Leighton Elaborate defense Refusing to repay £ 66m of relief from business tax. The government’s financial support was “welcome because it wasn’t a loan and didn’t have to be repaid. We made business decisions accordingly,” he said. That’s fine, but it misses the point. Tesco, Sainsbury’s, Asda, Morrisons, Lidl and Aldi could have the same argument, but all coughed.

To further confuse, Co-op has repaid £ 15.5 million claimed in support of the furlough. That money wasn’t a loan either. So why is it returned? The answer is simply that in a year when the total is small and the Co-op’s profits surge to £ 92m or £ 127m, some gesture is considered necessary, depending on which measure of profitability. It means that.

Layton would have saved time by reaching his true point: the idea that the co-op is a relative beggar, which is half right. It’s been a good year for profits, but the balance sheet is still too debt-bearing for groups that can’t raise new capital.

Still, even the implicit poverty plea is confusing when we see the co-op thinking at the same time that it can give executives bonuses at pre-pandemic levels. Therefore, the financial danger, or what we intend to assume, cannot be too extreme.

Maybe it all makes sense to clearly celebrate the business rate stance in the meeting room and in the council of members. However, from the outside, it is difficult to detect something similar to the working principle.

Biden’s multinational tax system

“We play according to the rules. If the government doesn’t like the rules, we need to change them,” he carries out the standard plea of ​​multinational corporations to shift profits. For decades, international agreements on tax reform have been issued with the confidence that they will remain on the horizon. The Organization for Economic Co-operation and Development made a sketch of the plan last year, but when President Trump was at the White House, he felt that political approval was impossible.

However, here Potentially important development.. The Biden administration supports the world’s lowest tax rate of 21%, and supports the idea that global companies (I think they are US tech giants) should pay more taxes in income-generating countries. I will. President Biden really changed his mood because nothing could happen in this area without US agreement.

But don’t think pure altruism is the motive. This is the case of a match of interest caused by the event. The new US administration wants to pay huge stimuli and infrastructure programs by raising corporate taxes, not to undermine its international competitiveness.

But not everyone jumps to a new song from Washington. The influence of US tech giant lobbying can face a fairly large tax bill, but it should not be underestimated. The European Union will also face the task of persuading Ireland, Luxembourg and others to limit tax competition.

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In other words, the attractive clarity of a minimum rate of 21% may not be offered. Get ready to see escapes, fudges and compromises. And that is when high levels of profits continue to match, with the goal of bringing taxation on multinational corporations into the digital 21st century. We’re in the thirty years of that century now, so that’s the point where something sounds much better than nothing.

Asos is clearly overcoming teen trauma

Founded 21 years ago, Asos stopped thinking of online clothing retailers as start-ups. Financial figures certainly suggest a business that has overcome the trauma of teenage profit warnings and warehouse cost overruns.

Half year profit Jumped from £ 30m to £ 106m And if the city analysts are right, the full-year result should be close to £ 190m, even if the blockade effect diminishes. Asos needs to prove that it can absorb Topshop, Topman, Miss Selfridge and HIIT brands smoothly. So you can make a decent profit with a spending of £ 330m. But the “seamless” integration claim sounds more credible these days.

Gestures, not Principles Exhibited at Co-op | Co-op Group

Source link Gestures, not Principles Exhibited at Co-op | Co-op Group

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