16 years ago, as the millennium was being celebrated nobody could have imagined that the all powerful banks would be setting aside billions to compensate missold PPI.
Workers, Unions and regulators are now estimating that IT companies who abused the visa process to eradicate the British workforce from their UK offices and projects could now be facing claims in excess of £1/2 trillion over the coming years.
Furthermore, companies that offshore could be targeted in new tax avoidance legislation and taxed at 40% of gross offshore expenditure to compensate Government coffers that have been emptied and that have led to 8 years of unnecessary austerity.
The U.K. government has boasted that it recklessly allowed up to half a million visas be approved each year, bringing into the UK a workforce of artificially cheap labour.
As IT companies have made billions, the U.K. workforce has been destroyed and the Chancellor has lost up to £10billion in tax revenue in the recent coalition and Tory government era alone.
In Scotland, challenging this tax evasion and bringing jobs back into Scotland for Scottish people could completely wipe out the £15bn deficit in one parliament.
Here is a summary of what the claims could entail, based on recent litigation in the States and discussions with Unions:
- Claims by migrant workers who have been discriminated against and underpaid for their work
- Claims by resident workers who lost jobs to migrant workers
- Claims by resident workers who were denied jobs in favour of migrant workers
In total, it is estimated that 5million migrant workers were brought into the UK in the last ten years and replaced resident workers.
Claims of £50k per migrant worker for discrimination and similar for resident workers could leave IT companies facing a bill of £100k for every migrant worker they brought in.
With 5 million workers brought in, the bill looks set to reach £1/2 trillion very quickly.
Now consider the offshored development and call centres and new tax legislation could lead to £multi-billion tax bills for the same period.
The next ten years look set to be very difficult for IT companies but could turn around the fortunes of the U.K. as a country.