Originally posted by MercladUK
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One for the 90% take home pay crowd
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"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank... -
Originally posted by cojak View PostAh, but the permie 'man on the street' also uses ISA's, so that's fair in their eyes...Comment
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Originally posted by MercladUK View PostYes it is, you have a choice
Standard savings accounts etc or a Tax Free ISA account thereby avoiding the tax normally payable on savings.
As avoidance is linked to questionable practices using legal loops holes lumping ISA's in as avoidance isn't helpful at all when discussing the finer points of these situations.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostYou are misusing the word avoid. Avoidance is linked to using loop holes within the bounds of the law. What you are doing by picking a different approved product is reducing your tax liability through tax planning.
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Let me google that for youComment
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Tax avoidance, even aggressive tax avoidance is legal and remains legal. If you use a tax avoidance vehicle you won't be prosecuted for tax evasion, you do not risk a criminal record.
Some tax avoidance works in the eyes of the courts, with regard to the legislation. Some tax avoidance doesn't work - it rests on an interpretation that the courts don't agree with, or is scuppered by (retrospective!) legislation. If yours doesn't work, then you have to pay the tax you owe + interest + penalties. ISA is tax avoidance that does work.Down with racism. Long live miscegenation!Comment
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Just had another one land in my inbox from Contract Recruit.
Take home up to 90% after fees, tax and NI.
Oh, and it's 100% HMRC compliant. Natch."Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.Comment
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Originally posted by pr1 View Post
Where the generlistic definition might be correct it still comes in many different guises so important that these distinctions are clear. A better definition would be...
Tax planning may be defined as an arrangement of one's financial affairs to take full advantage of all eligible tax exemptions, deductions, concessions, rebates, allowances permitted under the Income-Tax Act ,1961, so that the tax burden is minimised in the hands of the taxpayer without violating the legal provisions.
For instance, tax planning can be done by investing in specified permissible avenues eligible for deduction under section 80C or investment in an SEZ unit. It is legitimate as the legislature intends optimum utilisation of these deductions and exemptions to promote economic activity in the country.
Tax avoidance is reducing or negating tax liability in legally permissible ways by structuring one's affairs. Any such transaction would be valid only if it has commercial substance and is not a colourable device. The Supreme Court, in M/s McDowell and Co Ltd Vs Commercial Tax officer, 1985, (154 ITR 148(SC), held that for tax planning to be legitimate it must be within the legal framework and colourable devices cannot be part of tax planning. In deciding whether a transaction is a genuine or colourable device, it is open for the tax authorities to go behind the transaction and examine the "substance" and not merely the "form".Last edited by northernladuk; 6 October 2015, 11:19.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by DaveB View PostJust had another one land in my inbox from Contract Recruit.
Take home up to 90% after fees, tax and NI.
Oh, and it's 100% HMRC compliant. Natch.Comment
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Originally posted by cojak View PostAh, but the permie 'man on the street' also uses ISA's, so that's fair in their eyes...
"Should Caravans be allowed on the roads during daylight?" - definitely not....Comment
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The distinction between "tax planning" and "tax avoidance" is absurd.
The cited definition acknowledges that "tax avoidance" is using "legally permissible" tax planning.
It rarely ends well when courts are left with the responsibility of divining intent.
In seeking to criminalise "aggressive tax avoidance" our legislators are showing just how lazy they are. Instead of prosecuting people who are doing things which are "legally permissible," fix your stupid laws to close the loopholes.
Then you can have "rule of law" where people are found guilty for actually breaking the law instead of "rule of judges" who find someone guilty based on their surmise as to whether the person had bad intentions.Comment
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