No it Doesn’t

Tax avoidance schemes ‘costs UK billions in lost revenue’

Sigh… Tax avoidance is legal. It is the obligation of every business enterprise to limit its exposure to tax for the benefit of the owners, partners and shareholders. This tax was never owed in the first place. Therefore, there is no cost to hmrc.

If the government is so opposed to tax avoidance schemes, then make them illegal, whereupon they become tax evasion, which is illegal.

The spending watchdog said tackling avoidance, which is not illegal, was difficult but HMRC must do better.

It should do no such thing. It should confine itself to collecting that tax which is due and no more.

The coalition government has made cracking down on tax avoidance and evasion one of its key priorities as part of efforts to boost the exchequer and reduce the deficit.

Note how the BBC links the two as if they are the same. They are not; avoidance is legal, evasion is illegal –  there is no equivalence. And boosting the exchequer is not the only way to reduce the deficit. Slashing government spending, closing government departments en masse and generally living within their means would be a reasonable alternative, but one oft overlooked.

Avoidance is not only legal it is our moral duty. And I will take no lessons in morality from the dishonourable members on the green benches.

4 comments for “No it Doesn’t

  1. Mark in Mayenne
    November 21, 2012 at 9:07 am

    Absolutely right in all respect. Furthermore, the government offers tax avoidance schemes when it believes they serve its own interests (e.g. ISAs)

  2. Jim
    November 21, 2012 at 10:09 am

    Huge swathes of taxation is predicated on tax avoidance. Why else do they put taxes up on things they don’t want us to do (drink smoke etc) and reduce them on other things (pensions)? They actually want to be able to direct peoples behaviour with tax policy. What they don’t like is when the slaves leave the plantation, start thinking for themselves, and work out how to avoid other taxes. Then they get pissy about it.

  3. Richard
    November 21, 2012 at 11:27 am

    Any company setting up in the eu can register for tax in any eu country and work eu wide. The government and the bbc are trying to make it a moral case that it is only right and proper that they should pay tax here. They know they’re stuffed if they bring up the EU Question.

  4. Furor Teutonicus
    November 22, 2012 at 4:38 pm

    XX closing government departments en masse XX

    The fisrt of which, should be the BBC.

    But then, that would be a bit like Hitler sacking Goebbels, wouldn’t it.

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