Ofcom - Vodafone Fined £4.6 Million

[Hymie]

Isn’t it about time the government stopped taxing Joe Public for corporate wrong doing (because that’s what these fines are – paid to the exchequer), and started holding those at the top personally responsible by either gaoling them – or at least taking the money from their personal wealth?

Every time some regulatory body fines an organisation for a misdemeanour – no doubt they think that they are assisting Joe Public in getting a better deal – but in reality the fine is just a tax paid by you and me, giving corporations no incentive to halt such practices.

http://www.dailymail.co.uk/money/bills/article-3873756/Blundering-Vodafone-fined-4-6MILLION-Ofcom.html

[ToraToraTora]

I'd like to see them slinging the directors in the slammer, then we'd have a lot less of this sort of thing.

[EDDIE51]

How do you come to the conclusion it's 'Joe Public' that is being taxed?
The company is fined and the money goes to the exchequer. Surely it is the exact opposite of 'taxing the public' £4.6 million that does NOT have to be raised from tax?

[TheChair]

"but in reality the fine is just a tax paid by you and me"
I just can't see how you come to this conclusion. It's paid out of Vodafone's profits.

[Hymie]

Q: So from where do Vodafone's profits originate?

A: Joe Public, their customers

[bhg481]

Joe Public does not HAVE to deal with Vodafone; they can choose to deal with a different company. I chose some time ago not to deal with Vodafone any more, so I made no contribution to the "tax".

[EDDIE51]

Profits come out of sales obviously but it is perverse to call a loss of profit a 'tax' on customers. The lost profit will mean less bounus for the directors and less dividend for shareholders. It is shareholders and company directors who suffer a loss not customers.

[Hymie]

Although it’s true that Joe Public does not have to deal with Vodafone – those that did, did not know at the time that they were paying additional tax for the privilege – until the company had an extra tax demand due to their wrong doing.

It really is no different than their customers paying vat on their services, except that they have to pay this additional tax to boot.

[EDDIE51]

I still can't see where you get 'extra tax' from. Vodafone failed to provide refunds to customers who were due them, how can that be classed as 'extra tax'?
In your original question you say that' those at the top should be held personally liable' well they are being held liable, their bonus payments will be reduced or cancelled it will cost them £100,000s each !

[Hymie]

Eddie51 – you claim that the bosses are being held liable, how so?

I doubt very much that the company will retrospectively dock any payments made during the period of wrong doing, that would otherwise not have been paid.

It is highly unlikely that you will be seeing any bosses sacked with little prospect of future employment. Woe-betide any lowly employee within the organisation who transgresses the company rules.