What is tax avoidance?

[prozak]

On ToAA:
Many other strong points exist but simplest is if EBT is legal in UK, how can EBTS in IoM be avoidance..

Aren't you doing the classic thing here that HMRC appear to want?

ALL avoidance is legal.

ALL evasion is illegal.

So being legal in the UK or any other tax jurisdiction can still be avoidance if based in IoM.


As for the HSBC article. What most people fail to realise is that EVASION is not illegal in Switzerland. Their banking principles are such that they will only help foreign authorities if there is a crime that was comitted that is ALSO a crime in Switzerland. So EVASION is fine for them. Tax Fraud however is not.

That's how i tused to be anyway and I cannot imagine the Swiss like to change too much.

[webberg]

Aren't you doing the classic thing here that HMRC appear to want?

ALL avoidance is legal.

ALL evasion is illegal.

So being legal in the UK or any other tax jurisdiction can still be avoidance if based in IoM.


As for the HSBC article. What most people fail to realise is that EVASION is not illegal in Switzerland. Their banking principles are such that they will only help foreign authorities if there is a crime that was comitted that is ALSO a crime in Switzerland. So EVASION is fine for them. Tax Fraud however is not.

That's how i tused to be anyway and I cannot imagine the Swiss like to change too much.

Part of the deal done by the Swiss and HMRC is that aside from a one off information exchange (after a long notice period to allow people to move their money), information would then be available annually.

There was also discussion about a charge being levied on each bank account and remitted to HMRC to allow taxpayers to then argue for it being returned. I would need to check whether that piece survived the final version of the agreement.

[webberg]

Tax defaulters list

https://www.gov.uk/government/upload...defaulters.pdf

HMRC issues regular lists of those they regard as deserving "name and shame".

The first name on the latest list is interesting.

I've not researched who the company is connected to nor what they did but looking at the name, it looks like some form of agency/contractor arrangement.

In terms of HMRC's weapons, perhaps not the most effective but an indication of what they can do.

[webberg]

bit more colour

£16m black hole as payroll parasite David Allen calls in the liquidators - Investigations.

[EBTContractor]

Love that a leaflet distribution outfit is named and shamed over 2 x £55!

[squirrel]

https://www.gov.uk/government/upload...defaulters.pdf

HMRC issues regular lists of those they regard as deserving "name and shame".

The first name on the latest list is interesting.

I've not researched who the company is connected to nor what they did but looking at the name, it looks like some form of agency/contractor arrangement.

In terms of HMRC's weapons, perhaps not the most effective but an indication of what they can do.

I can't see many Lords and Sirs and double-barrelled surnames on the list. I thought tax avoidance / evasion / corruption only went on in the upper echelons of society, well according to 90% of those having their say on the BBC HSBC article yesterday at least. It was incredible at how bitter and blinkered the vast majority of the respondents were. I did, however, come across a new phrase, the Politics of Envy. Never heard it called that before but it's perfect, succinct and exactly what HMRC and HMG (all parties) are up to. Unfortunately it's working and by the time the 90% realise what's happened it will be too late.

[webberg]

I can't see many Lords and Sirs and double-barrelled surnames on the list. I thought tax avoidance / evasion / corruption only went on in the upper echelons of society, well according to 90% of those having their say on the BBC HSBC article yesterday at least. It was incredible at how bitter and blinkered the vast majority of the respondents were. I did, however, come across a new phrase, the Politics of Envy. Never heard it called that before but it's perfect, succinct and exactly what HMRC and HMG (all parties) are up to. Unfortunately it's working and by the time the 90% realise what's happened it will be too late.

There's always votes to be had in bashing the more fortunate.

[regron]

Not sure if anyone saw Sky News this morning at about 07:45 but they were discussing the current HSBC Tax Avoidance scandal which has recently broke. One chap being interviewed (didn't get details) stated as we all know that whilst Tax Evasion is illegal, Tax Avoidance isn't. He agreed with the government clamping down on Avoidance but clearly disagreed with the retrospective way of doing so, stating that whilst the HMRC tackle, name and shame big businesses and celebrities, there are a lot of others such as 'us' out there where it will hit very hard.

Ok, nothing over positive or to get overly excited about and not exactly breaking news but my point being, at least some people out there understand the implication of such draconian measures by HMRC and this is the first time I have heard that normal people will be affected by the media. Anything to keep the pressure on and the legs going on all of this !!!!

[Boobetty]

It was also nice to see Lin Homer getting a pasting off Maggie Hodge yesterday. At one point Hodge criticised HMRC by pointing out that they just sit and wait for people to come forward. Homer defended, saying HMRC are 'proactive'.

Proactive my *rse. I've had a COP8 open for almost ten years and they have done precisely ***k all in that time other than wait for new legislation that provides them with the toolkit to achieve what they wanted to achieve over the last decade but without any effort.

Laughable really. 'HMRC' and 'proactive' cannot be used in the same sentence.

[squirrel]

Question Time just now...

Err, was it me or did Sarah Wollaston MP just say that Tax Avoidance can't be applied retrospectively live on TV?