Tax Grab

[Gromit]

Harbour energy, a North Sea producer says its £2,500Million profit was reduced to £8Million after tax.

https://www.theguardian.com/business/2023/mar/09/north-seas-biggest-energy-producer-says-uk-windfall-tax-wiped-out-surge-in-profit

Seems a tax to curb excessive profiteering has been used for a huge tax grab by the Government.

[ToraToraTora]

weren't you screaming for the government to tax the Aprils off these companies the other week.

[bobbinwales]

Seems for some it's too much yet more think it's not taxing excess energy profits and big companys enough. Am not sure there's any right answer ... certainly they can never please everyone including anyone that wants to find something to complain about

[barry1010]

75% tax for energy producers, of course that is only on their UK profits.

[Gromit]

I supported a windfall tax, but the way it has been implemented in this case makes no sense.

I was against profiteering from the Ukraine war by energy companies hiking their prices to its customers.

The Government has not just taken excessive profits, they have taken nearly ALL the profit.

Before the war Harbour made £101million after tax. This year it made £8million after tax.

I assumed the windfall would be on profits above normal (£101million), not on ALL the profit for last year.

Yet another simple thing the Government cannot get right.

[Old_Geezer]

It was pretty much meant to wasn't it ? The idea being that companies don't profiteer from situations that they didn't do anything to create while the public suffer and pay the cost.

[bobbinwales]

Gromit wants to have his cake and eat it

[bobbinwales]

I doubt keir will speak up about ' excessive taxes 'on energy source company's. His got more sense

[THECORBYLOON]

Oil companies pay taxes based on their profits, Corporation Tax at 30%, Supplementary Tax at 10% and 35% for the Energy Profits Levy.

That totals 75% so why has Harbour's profits been reduced by a lot more than that rate?

[Gromit]

TCL
I couldn’t make sense of the figures published, but assumed they must be correct.
A £2.5Billion profit and they are left with just £8million after tax? Can that really be true ?

[bobbinwales]

No. Of course all the difference between 2.5 billion and 8 million isnt tax, how could it be . Best to read your own article to answer your own question
"However, its total tax expense increased to $2.5bn in 2022, up from $213m a year earlier. This included taxes of just over $700m, along with a one-off tax charge of $1.7bn related to the energy profits levy – effectively money set aside to cover likely windfall tax costs between now and 2028."
So they chose to set aside £1.8 billion- they havent paid that 1.8 billion, theyve just put it aside (wonder if its a tax avoidance measure now?)

[Gromit]

Thanks BiW :-)

[youngmafbog]

Oh dear, not the first time you have rushed to slate the Government and failed to read your own article properly is it Gromit.

[Gromit]

YMB
The article has had a rewrite since I posted the link.

Possibly because it was misleading. It misled me.
The original version did not make clear the tax was for 5 years.

[youngmafbog]

OK, let you off then.