TOCS Paying Twice In Dividends What They Pay In Tax

RAIL UNION RMT released new research at their AGM in Brighton this morning showing that Britain's main private train operating companies are paying out twice as much in dividends than they are in tax.

Figures for the top five train operators showed that they paid just over 13% in tax on operating profits of nearly a billion pounds at a time when the basic rate of corporation tax is 23% and the standard personal tax rate is 20%.

In total, the top five train operators paid out £241 million in dividends to shareholders while paying out just around half of that - £123 million - in tax. The pitiful amount of tax paid pales into insignificance against the taxpayer subsidy of £2.48 billion soaked up by the train companies as they make a killing from Britain's privatised railways.

RMT is demanding a full investigation into the tax operations of Britain's train companies by the Public Accounts Committee with a focus on just how much money is being drained out of Britain's railways by overseas companies to subsidise their own train operations. Yesterday, RMT lifted the lid on the extent of overseas ownership of the rail network with more than 60% held by European state railways, using Britain's rip-off fares to subsidise their national services.

RMT General Secretary Bob Crow said:

"These new figures on the pitiful rates of tax paid by the train operators justify a full investigation probing into the rotten heart of Britain's privatised railways. We know that the government are terrified of lifting the lid on just how the British travelling public are being exploited because it would reinforce from top to bottom the case for public ownership.

"With the new Crossrail operation being lined up for the same gang who have plundered our railways for billions over the past 20 years it shows that this Government is prepared to tolerate the robbery on our railways in the name of pure political ideology. The fight for public ownership goes on."

> RMT National News

Tuesday, 14th July
Offshore union, RMT has joined businesses, trade unions, and industry organisations in signing an open letter calling on the government to support continued domestic oil and gas production alongside the expansion of renewable energy.
Friday, 10th July
RMT members employed by CAF Rail on the Transport for Wales contract will take strike action on Sunday and Monday evening after the company refused to improve its pay offer and retaliated against workers for taking lawful industrial action.
Tuesday, 7th July
Tube union RMT is today marking the 21st anniversary of the 7 July 2005 London bombings by remembering the 52 people who lost their lives, the hundreds who were injured and all those affected by the attacks.
Monday, 6th July
Offshore union RMT has marked the 38th anniversary of the Piper Alpha disaster, in which 165 offshore workers and two seafarers lost their lives.
Monday, 6th July
Nearly 70 per cent of rail passengers believe Great British Railways should deliver services such as cleaning, catering, and security in-house with directly employed staff rather than outsourcing them to private contractors, according to new independent polling commissioned by RMT.