Why privatisation has been a costly failure in Britain

Re:Why privatisation has been a costly failure in Britain by yread on Tuesday July 11, 2023 @10:12AM (#36681249)

Lots of corporate tax code is about taxing the money flows from the company to the physical persons. Somehow buybacks weren't taxed until recently.

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Re:Why privatisation has been a costly failure in Britain by lotsofpulp on Tuesday July 11, 2023 @10:39AM (#36681631)

How are buybacks not taxed? The entity selling the shares has always had to pay income tax on capital gains from selling shares.

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Re:Why privatisation has been a costly failure in Britain by robertlagrant on Tuesday July 11, 2023 @12:28PM (#36683346)

I think this is wrong, twice:

- buybacks are taxed when a person gets money for their shares, as capital gains tax

- lots of corporate tax is about exactly the opposite of what you say; i.e. reaching inside a company's bank account and taxing its profits directly, rather than waiting for the money to flow out and taxing it as VAT/income tax/cap gains. A huge amount of money and effort is spent on balancing this correctly, with R&D credits, structuring profits to appear in the correct year, etc etc.

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Re:Why privatisation has been a costly failure in Britain by yread on Wednesday July 12, 2023 @05:41AM (#36692251)

Yes, but when your shares gain in value you can borrow more money on them. That is not taxed.

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